Advertisement

Life-Cycle Framework

  • José Luis Iparraguirre
Chapter

Abstract

This part introduces the life-cycle hypothesis—the standard modelling framework in economics and ageing. It presents a basic, stripped-down version of the model and then goes on to discuss bequests, uncertainty, the endogeneity of work and retirement decisions, social security benefits, and insurance. Other sections include comments on the so-called retirement-consumption puzzle, alternative motives to save, and financial literacy. Also included are discussions on the macroeconomic implications of the hypothesis and the role of children and migration and interest rates. The part concludes with a review of the empirical evidence and a critical view from social gerontology.

References

  1. Aaron, Henry. Economic Effects of Social Security. Washington, DC: The Brookings Institution, 1982.Google Scholar
  2. Abel, Andrew B., and Mark Warshawsky. “Specification of the Joy of Giving: Insights from Altruism.” The Review of Economics and Statistics 70, no. 1 (1988): 145–149.CrossRefGoogle Scholar
  3. Agarwal, Sumit, et al. “The Age of Reason: Financial Decisions over the Life Cycle and Implications for Regulation.” Brookings Papers on Economic Activity Fall (2009): 51–101.Google Scholar
  4. Aguiar, Mark, and Erik Hurst. “Consumption Versus Expenditure.” Journal of Political Economy 113, no. 5 (2005): 919–948.CrossRefGoogle Scholar
  5. Alexander, Richard D. Darwinism and Human Affairs. The Jessie and John Danz Lectures. Seattle: University of Washington Press, 1979.Google Scholar
  6. ——. The Biology of Moral Systems. Foundations of Human Behavior. Berlin: Walter de Gruyter, 1987.Google Scholar
  7. Ameriks, John, et al. “The Joy of Giving or Assisted Living? Using Strategic Surveys to Separate Public Care Aversion from Bequest Motives.” The Journal of Finance 66, no. 2 (2011): 519–561.Google Scholar
  8. Ando, Albert, and Franco Modigliani. “The “Life Cycle” Hypothesis of Saving: Aggregate Implications and Tests.” American Economic Review 53, no. 1 (1963): 55–84.Google Scholar
  9. Andreoni, James. “Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence.” Journal of Political Economy 97, no. 6 (1989): 1447–1458.CrossRefGoogle Scholar
  10. ——. “Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving.” The Economic Journal 100, no. 401 (1990): 464–477.CrossRefGoogle Scholar
  11. Angeletos, George-Marios, et al. “The Hyperbolic Consumption Model: Calibration, Simulation, and Empirical Evaluation.” Journal of Economic Perspectives 15, no. 3 (2001): 47–68.Google Scholar
  12. Arrondel, Luc, and André Masson. “Family Transfers Involving Three Generations.” The Scandinavian Journal of Economics 103, no. 3 (2001): 415–443.CrossRefGoogle Scholar
  13. Attanasio, Orazio P. “Frank Ramsey’s A Mathematical Theory of Saving.” The Economic Journal 125, no. 583 (2015): 269–294.Google Scholar
  14. Attanasio, Orazio P., and Guglielmo Weber. “Consumption and Saving: Models of Intertemporal Allocation and Their Implications for Public Policy.” Journal of Economic Literature 48, no. 3 (2010): 693–751.CrossRefGoogle Scholar
  15. Auerbach, Alan J., et al. “The Annuitization of Americans’ Resources: A Cohort Analysis.” In Essays on Saving Bequests, Altruism, and Life-cycle Planning. Chap. 2, 93–131. Cambridge: The MIT Press, 2000.Google Scholar
  16. Augustine of Hippo. The Confessions. Oxford World’s Classics. Oxford: Oxford University Press, 1998.Google Scholar
  17. Aumann, Robert J. “What is Game Theory Trying to Accomplish.” In Frontiers of Economics. Edited by Kenneth J. Arrow and Seppo Honkapohja. 28–76. Oxford: Basil Blackwell, 1985.Google Scholar
  18. Baltes, Paul B. “Longitudinal and Cross-Sectional Sequences in the Study of Age and Generation Effects.” Human Development 11, no. 3 (1968): 145–171.Google Scholar
  19. Banerjee, Abhijit V., and Esther Duflo. “Growth Theory Through the Lens of Development Economics.” In Handbook of Economic Growth. Edited by Philippe Aghion and Steven N. Durlauf. Vol. 1A, 473–552. Amsterdam: Elsevier, 2005.Google Scholar
  20. Banks, James, Richard Blundell, and Sarah Tanner. “Is There a Retirement-Savings Puzzle?” The American Economic Review 88, no. 4 (1998): 769–788.Google Scholar
  21. Baranzini, Mauro. “Modigliani’s Life-Cycle Theory of Savings Fifty Years Later.” Banca Nazionale del Lavoro Quarterly Review 58, nos. 233–234 (2005): 109–172.Google Scholar
  22. Barban, Nicola. Essays on Sequence Analysis for Life Course Trajectories Ph.D. Thesis (2010).Google Scholar
  23. Barker, Drucilla, and Susan F. Feiner. Liberating Economics: Feminist Perspectives on Families, Work, and Globalization. Ann Harbor: University of Michigan Press, 2009.Google Scholar
  24. Barnett, William A., and Robert M. Solow. “An Interview with Franco Modigliani.” Macroeconomic Dynamics 4, no. 02 (June 2000): 222–256.Google Scholar
  25. Barro, Robert J., James W. Friedman. “On Uncertain Lifetimes.” The Journal of Political Economy 85, no. 4 (1977): 843–849.CrossRefGoogle Scholar
  26. Bazin, Damien, and Jerome Ballet. “A Basic Model for Multiple Self.” The Journal of Socio-Economics 35, no. 6 (2006): 1050–1060.CrossRefGoogle Scholar
  27. Becker Gary S., and Kevin M. Murphy. “The Family and the State.” Journal of Law and Economics 31, no. 1 (1988): 1–18.Google Scholar
  28. Benedict, Ruth. The Chrysanthemum and the Sword: Patterns of Japanese Culture. Boston: Mariner Books/Houghton Mifflin, 1967.Google Scholar
  29. Bernheim, B. Douglas, Andrei Shleifer, and Lawrence H. Summers. “The Strategic Bequest Motive.” The Journal of Political Economy 93, no. 6 (1985): 1045–1076.Google Scholar
  30. Bevan, David L., and Joseph E. Stiglitz. “Intergenerational Transfers and Inequality.” Greek Economic Review 1, no. 1 (1979): 8–26.Google Scholar
  31. Bilodeau, Marc, and Richard Steinberg. “Chapter 19 Donative Nonprofit Organizations.” In Handbook of the Economics of Giving Altruism and Reciprocity. Edited by Serge-Christophe Kolm and Jean Mercier Ythier, Volume 2. Applications. 1271–1333. Amsterdam: Elsevier, 2006.Google Scholar
  32. Bíró, Anikó. “Subjective Mortality Hazard Shocks and the Adjustment of Consumption Expenditures.” Journal of Population Economics 26, no. 4 (2013): 1379–1408.CrossRefGoogle Scholar
  33. Blake, David. Pension Economics. Chichester: Wiley, 2006a.Google Scholar
  34. ——. Pension Finance. Chichester: Wiley, 2006b.Google Scholar
  35. Blanchard, Olivier Jean, and Stanley Fischer. Lectures on Macroeconomics. Cambridge: The MIT Press, 1996.Google Scholar
  36. Blau, David M. “Retirement and Consumption in a Life Cycle Model.” Journal of Labor Economics 26, no. 1 (2008): 35–71.Google Scholar
  37. Blaug, Mark. The Methodology of Economics, or How Economists Explain. Cambridge Surveys of Economic Literature. Cambridge: Cambridge University Press, 1992.CrossRefGoogle Scholar
  38. Bloom, David E., David Canning, and Bryan Graham. “Longevity and Life-Cycle Savings.” The Scandinavian Journal of Economics 105, no. 3 (2003): 319–338.CrossRefGoogle Scholar
  39. Bloom, David E., et al. Demographic Change Social Security Systems, and Savings. NBER Working Paper 12621. Cambridge: National Bureau of Economic Research, 2006.CrossRefGoogle Scholar
  40. Bloom, David E., et al. “The Effect of Subjective Survival Probabilities on Retirement and Wealth in the United States.” In Population Aging Intergenerational Transfers and the Macroeconomy. Edited by Robert L. Clark, Naohiro Ogawa, and Andrew Mason. 67–100. Cheltenham: Edward Elgar, 2007.Google Scholar
  41. Bommier, Antoine. “Life-Cycle Preferences Revisited.” Journal of the European Economic Association 11, no. 6 (2013): 1290–1319.CrossRefGoogle Scholar
  42. Börsch-Supan, Axel, and Annamaria Lusardi. “Saving: A Cross-National Perspective.” In Life-Cycle Savings and Public Policy: A Cross-National Study of Six Countries. 1–31. San Diego: Academic Press, 2003.Google Scholar
  43. Börsch-Supan, Axel, and Konrad Stahl. “Life Cycle Savings and Consumption Constraints: Theory Empirical Evidence, and Fiscal Implications.” Journal of Population Economics 4, no. 3 (1991): 233–255.CrossRefGoogle Scholar
  44. Boulding, Kenneth Ewart. A Preface to Grants Economics: The Economy of Love and Fear. New York: Praeger, 1981.Google Scholar
  45. Browning, Martin, and Thomas F. Crossley. “The Life-Cycle Model of Consumption and Saving.” Journal of Economic Perspectives 15, no. 3 (2001): 3–22.CrossRefGoogle Scholar
  46. Browning, Martin, and Annamaria Lusardi. “Household Saving: Micro Theories and Micro Facts.” Journal of Economic Literature 34, no. 4 (1996): 1797–1855.Google Scholar
  47. Browning, Martin, Thomas F. Crossley, and Melanie Lührmann. “Durable Purchases Over the Later Life Cycle.” Oxford Bulletin of Economics and Statistics 78, no. 2 (Apr 2016): 145–169.CrossRefGoogle Scholar
  48. Brumberg, Richard, and Franco Modigliani. “Utility Analysis and the Consumption Function: An Interpretation of Cross-Section Data.” In Post-Keynesian Economics. Edited by Kenneth Kurihara. New Brunswick: Rutgers University Press, 1954.Google Scholar
  49. Carroll, Christopher, D. “Why Do the Rich Save So Much?” In Does Atlas Shrug?: The Economic Consequences of Taxing the Rich. Edited by Joel Slemrod. Chap. 14, 465–484. Cambridge: Russell Sage Foundation, 2000.Google Scholar
  50. Carroll, Christopher, D. “Buffer-Stock Saving and the Life Cycle/Permanent Income Hypothesis.” The Quarterly Journal of Economics 112, no. 1 (1997): 1–55.Google Scholar
  51. Cencini, Alvaro. Macroeconomic Foundations of Macroeconomics. Routledge Frontiers of Political Economy. Abingdon: Routledge, 2005.Google Scholar
  52. Chiang, Alpha C. Fundamental Methods of Mathematical Economics. New York: McGraw-Hill, 1984.Google Scholar
  53. Christelis, Dimitris, Tullio Jappelli, and Mario Padula. “Cognitive Abilities and Portfolio Choice.” European Economic Review 54, no. 1 (2010): 18–38.CrossRefGoogle Scholar
  54. Corna, Laurie M., et al. Employment histories of British men and women: implications for extended working lives and socio-economic circumstances in later life. Presentation (2015).Google Scholar
  55. Cox, Donald. “Motives for Private Income Transfers.” Journal of Political Economy 95, no. 3 (1987): 508–546.CrossRefGoogle Scholar
  56. Cremer, Helmuth, and Pierre Pestieau. “Wealth Transfer Taxation: A Survey of the Theoretical Literature.” In Handbook of the Economics of Giving Altruism and Reciprocity. Edited by Serge-Christophe Kolm and Jean Mercier Ythier. Volume 2. Applications. 1107–1134. Amsterdam: Elsevier, 2006.Google Scholar
  57. Dannefer, Dale. “Human Action and Its Place in Theories of Aging.” Journal of Aging Studies 3, no. 1 (1989): 1–20.CrossRefGoogle Scholar
  58. De Nardi, Mariacristina, Eric French, and John Bailey Jones. Differential Mortality Uncertain Medical Expenses, and the Saving of Elderly Singles. NBER Working Paper 12554. Cambridge: National Bureau of Economic Research, 2006.CrossRefGoogle Scholar
  59. ——. “Life Expectancy and Old Age Savings.” American Economic Review Papers and Proceedings 99, no. 2 (2009): 110–115.CrossRefGoogle Scholar
  60. ——. “Why Do the Elderly Save? The Role of Medical Expenses.” Journal of Political Economy 118, no. 1 (2010): 39–75.CrossRefGoogle Scholar
  61. ——. Savings After Retirement: A Survey. NBER Working Paper 21268. Cambridge: National Bureau of Economic Research, 2015.CrossRefGoogle Scholar
  62. Deaton, Angus. Understanding Consumption. Clarendon Lectures in Economics. Oxford: Clarendon Press, 1992.CrossRefGoogle Scholar
  63. ——. “Franco Modigliani and the Life-Cycle Theory of Consumption.” PSL Quarterly Review 58, nos. 233–234 (2012): 91–107.Google Scholar
  64. Dennis, Ken. Rationality in Economics: Alternative Perspectives. Recent Economic Thought. New York: Springer Science+ Business Media, 2012.Google Scholar
  65. Desai, Meghnad, and Anup Shah. “Bequest and Inheritance in Nuclear Families and Joint Families.” Economica 50, no. 198 (1983): 193–202.CrossRefGoogle Scholar
  66. Diamond, Peter, and Botond Köszegi. “Quasi-Hyperbolic Discounting and Retirement.” Journal of Public Economics 87, no. 9 (2003): 1839–1872.CrossRefGoogle Scholar
  67. Diewald, Martin. “Lebenslaufregime: Begriff, Funktion und Hypothesen zum Wandel.” In: Neue Lebenslaufregimes neue Konzepte der Bildung Erwachsener?. Edited by Axel Bolder et al. 25–42. Wiesbaden: VS Verlag für Sozialwissenschaften, 2010.Google Scholar
  68. Doyle, John R. “Survey of Time Preference, Delay Discounting Models.” Judgment and Decision Making 8, no. 2 (2013): 116–135.Google Scholar
  69. Duarte, Pedro Garcia, and Gilberto Tadeu Lima. “Privileging Micro Over Macro? A History of Conflicting Positions.” In Microfoundations Reconsidered: The Relationship of Micro and Macroeconomics in Historical Perspective. Edited by Pedro Garcia Duarte and Gilberto Tadeu Lima. Cheltenham: Edward Elgar, 2012.CrossRefGoogle Scholar
  70. Dynan, Karen E., Jonathan S. Skinner, and Stephen P. Zeldes. “The Importance of Bequests and Life-Cycle Saving in Capital Accumulation: A New Answer.” The American Economic Review 92, no. 2 (2002): 274–278.CrossRefGoogle Scholar
  71. Dynan, Karen E., Jonathan Skinner, and Stephen P. Zeldes. “Do the Rich Save More?” Journal of Political Economy 12 (2004): 397–444.CrossRefGoogle Scholar
  72. Edwards, Sebastian. “Why are Latin America’s Savings Rates So Low? An International Comparative Analysis.” Journal of Development Economics 51, no. 1 (1996): 5–44.CrossRefGoogle Scholar
  73. Ekerdt, David J. “Born to Retire: The Foreshortened Life Course.” The Gerontologist 44, no. 1 (2004): 3–9.Google Scholar
  74. Farmer Roger E. A., ed. Macroeconomics in the Small and the Large: Essays on Microfoundations, Macroeconomic Applications and Economic History in Honor of Axel Leijonhufvud. Cheltenham: Edward Elgar, 2009.Google Scholar
  75. Feldstein, Martin. “Social Security Induced Retirement, and Aggregate Capital Accumulation.” The Journal of Political Economy 82, no. 5 (1974): 905–926.CrossRefGoogle Scholar
  76. Fernández-Villaverde, Jesús, and Dirk Krueger. “Consumption Over the Life Cycle: Facts from Consumer Expenditure Survey Data.” The Review of Economics and Statistics 89, no. 3 (2007): 552–565.CrossRefGoogle Scholar
  77. Findley, T. Scott, and Frank N. Caliendo. “Time Inconsistency and Retirement Choice.” Economics Letters 129 (2015): 4–8.CrossRefGoogle Scholar
  78. Findley, T. Scott, and James A. Feigenbaum. “Quasi-Hyperbolic Discounting and the Existence of Time-Inconsistent Retirement.” Theoretical Economics Letters 3, no. 2 (2013): 119–123.Google Scholar
  79. Fishburn, Peter C., and Ariel Rubinstein. “Time Preference.” International Economic Review 23, no. 3 (1982): 677–694.CrossRefGoogle Scholar
  80. Fleurbaey Marc, et al. Fair Retirement Under Risky Lifetime. CORE Discussion Paper 49. Center for Operations Research and Econometrics, 2013.Google Scholar
  81. Fourastié, J. Les Trente Glorieuses: Ou la révolution invisible de 1946 à 1975. Paris: Fayard, 1979.Google Scholar
  82. Frederick, Shane. “Valuing Future Life and Future Lives: A Framework for Understanding Discounting.” Journal of Economic Psychology 27, no. 5 (2006): 667–680.CrossRefGoogle Scholar
  83. Frederick, Shane, George Loewenstein, and Ted O’donoghue. “Time Discounting and Time Preference: A Critical Review.” Journal of Economic Literature 40, no. 2 (2002): 351–401.CrossRefGoogle Scholar
  84. French, Eric. “The Effects of Health, Wealth, and Wages on Labour Supply and Retirement Behaviour.” The Review of Economic Studies 72, no. 2 (2005): 395–427.CrossRefGoogle Scholar
  85. Funk, Lura M. “‘Returning the Love’, Not ‘Balancing the Books’: Talk About Delayed Reciprocity in Supporting Ageing Parents.” Ageing & Society 32, no. 4 (2012): 634–654.Google Scholar
  86. Gale, William G., and John Karl Scholz. “Intergenerational Transfers and the Accumulation of Wealth.” The Journal of Economic Perspectives 8, no. 4 (1994): 145–160.Google Scholar
  87. Gan, Li, et al.. “Subjective Mortality Risk and Bequests.” Journal of Econometrics 188, no. 2 (2015): 514–525.Google Scholar
  88. Gerrard, Bill J. The Economics of Rationality. Abingdon: Routledge, 2006.CrossRefGoogle Scholar
  89. Glick, Paul C. “The Family Cycle.” American Sociological Review 12, no. 2 (1947): 164–174.Google Scholar
  90. ——. “Updating the Life Cycle of the Family.” Journal of Marriage and the Family 39, no. 1 (1977): 5–13.Google Scholar
  91. Gokhale, Jagadeesh, et al. “Understanding the Postwar Decline in US Saving: A Cohort Analysis.” Brookings Papers on Economic Activity 1 (1996): 315–390.CrossRefGoogle Scholar
  92. Gomes, Barbara, et al. “Heterogeneity and Changes in Preferences for Dying at Home: A Systematic Review.” BMC Palliative Care 12, no. 1 (2013): 7.Google Scholar
  93. Gourinchas, Pierre-Olivier. “Precautionary Savings, Life Cycle and Macroeconomics.” In Econometric Society World Congress 2000 Contributed Papers 0793, 2000.Google Scholar
  94. Gourinchas, Pierre-Olivier, and Jonathan A. Parker. “The Empirical Importance of Precautionary Saving.” American Economic Review 91, no. 2 (2001): 406–412.CrossRefGoogle Scholar
  95. Gourinchas, Pierre-Olivier, and Jonathan A. Parket. “Consumption over the Life Cycle.” Econometrica 70, no. 1 (2002): 47–89.CrossRefGoogle Scholar
  96. Graaff, Johannes de Villiers. “Mr Harrod on Hump Saving.” Economica 17, no. 65 (1950): 81–90.Google Scholar
  97. Grether, David M., and Charles R. Plott. “Economic Theory of Choice and the Preference Reversal Phenomenon.” The American Economic Review 69, no. 4 (1979): 623–638.Google Scholar
  98. Hahn, Frank. “Macro Foundations of Micro-Economics.” Economic Theory 21, no. 2 (2003): 227–232.CrossRefGoogle Scholar
  99. Han, Shin-Kap, and Phyllis Moen. “Clocking Out: Temporal Patterning of Retirement.” American Journal of Sociology 105, no. 1 (1999): 191–236.CrossRefGoogle Scholar
  100. Han, S. Duke, et al. “Financial Literacy is Associated with Medial Brain Region Functional Connectivity in Old Age.” Archives of Gerontology and Geriatrics 59, no. 2 (2014): 429–438.Google Scholar
  101. Han, S. Duke, et al. “Financial Literacy is Associated with White Matter Integrity in Old Age.” NeuroImage 130 (2016): 223–229.CrossRefGoogle Scholar
  102. Harrod, Roy Forbes. Towards a Dynamic Economics. Some Recent Development of Economic Theory and Their Application to Policy. London: Macmillan, 1948.Google Scholar
  103. Hartley, James E. “Retrospectives: The Origins of the Representative Agent.” The Journal of Economic Perspectives 10, no. 2 (1996): 169–177.Google Scholar
  104. Hartley, J. E., and J. E. Hartley. The Representative Agent in Macroeconomics. Routledge Frontiers of Political Economy Taylor & Francis, 2002. ISBN: 9781134756803.Google Scholar
  105. Heckman, James. “Life Cycle Consumption and Labor Supply: An Explanation of the Relationship between Income and Consumption Over the Life Cycle.” The American Economic Review 64, no. 1 (1974): 188–194.Google Scholar
  106. Heimer, Rawley Z., Kristian Ove R. Myrseth, Raphael S. Schoenle, et al. YOLO: Mortality Beliefs and Household Finance Puzzles. Working Paper 15–21. Federal Reserve Bank of Cleveland, 2015.Google Scholar
  107. Hofferth, Sandra, and Frances Goldscheider. “Family Heterogeneity Over the Life Course.” In Handbook of the Life Course: Volume II. Edited by J. Michael Shanahan, T. Jeylan Mortimer, and Monica Kirkpatrick Johnson. 161–178. Cham: Springer International Publishing, 2016.CrossRefGoogle Scholar
  108. Hubbard, R. Glenn (1987). “Uncertain Lifetimes, Pensions, and Individual Saving.” In: Issues in Pension Economics. Chicago: University of Chicago Press, 175–210.Google Scholar
  109. Hurd, Michael D. “Mortality Risk and Bequests.” Econometrica 57, no. 4 (1989): 779–813.Google Scholar
  110. Hurd, Michael D. “Research on the Elderly: Economic Status, Retirement, and Consumption and Saving.” Journal of Economic Literature 28, no. 2 (1990): 565–637.Google Scholar
  111. Hurd, Michael, and Susann Rohwedder. The Retirement-Consumption Puzzle: Anticipated and Actual Declines in Spending at Retirement. NBER Working Paper 111639586. Cambridge: National Bureau of Economic Research, 2003.CrossRefGoogle Scholar
  112. Hurd, Michael D., and Susann Rohwedder. Some Answers to the Retirement-Consumption Puzzle. NBER Working Paper 12057. Cambridge: National Bureau of Economic Research, 2006.CrossRefGoogle Scholar
  113. Irigoyen, Claudio, Esteban Rossi-Hansberg, and Mark L. J. Wright. Solutions Manual for Recursive Methods in Economic Dynamics. Cambridge: Harvard University Press, 2002.Google Scholar
  114. Jackson, William A. “Post-Fordism and Population Ageing.” International Review of Applied Economics 20, no. 4 (2006): 449–467.Google Scholar
  115. Janssen, Maarten. Microfoundations: A Critical Inquiry. London: Routledge, 1993.Google Scholar
  116. Jappelli, Tullio, and Mario Padula. “Investment in Financial Literacy and Saving Decisions.” Journal of Banking & Finance 37, no. 8 (2013): 2779–2792.CrossRefGoogle Scholar
  117. Jehle, Geoffrey Alexander, and Philip J. Reny. Advanced Microeconomic Theory. Harlow: Pearson Education Limited, 2011.Google Scholar
  118. Johnson, Paul A., and Jane Falkingham. Ageing and Economic Welfare. London: SAGE Publications Ltd, 1992.Google Scholar
  119. Katz, Stephen. Disciplining Old Age the Formation of Gerontological Knowledge. Charlottesville: University Press of Virginia, 1996.Google Scholar
  120. Kearl, J. R., and Clayne L. Pope. “The Life Cycle in Economic History.” The Journal of Economic History 43, no. 1 (1983): 149–158.Google Scholar
  121. Keynes, John Maynard. “The General Theory of Employment, Interest and Money.” The General Theory of Employment, Interest and Money, 1936.Google Scholar
  122. Kinugasa, Tomoko, and Andrew Mason. “Why Countries Become Wealthy: The Effects of Adult Longevity on Saving.” World Development 35, no. 1 (2007): 1–23.CrossRefGoogle Scholar
  123. Kirman, Alan P. “Whom or What Does the Representative Individual Represent?” The Journal of Economic Perspectives 6, no. 2 (1992): 117–136.Google Scholar
  124. Kohli, Martin. “The World We Forgot: A Historical Review of the Life Course.” In Later Life, The Social Psychology of Aging. Edited by V. W. Marshall. 271–303. London: Sage, 1986.Google Scholar
  125. ——. “The Institutionalization of the Life Course: Looking Back to Look Ahead.” Research in Human Development 4, nos. 3–4 (2007): 253–271.Google Scholar
  126. Kopczuk, Wojciech, and Joseph P. Lupton. “To Leave or Not to Leave: The Distribution of Bequest Motives.” The Review of Economic Studies 74, no. 1 (2007): 207–235.CrossRefGoogle Scholar
  127. Korniotis, George M., and Alok Kumar. “Do Older Investors Make Better Investment Decisions?” The Review of Economics and Statistics 93, no. 1 (2011): 244–265.CrossRefGoogle Scholar
  128. Kotlikoff, Laurence J. “Testing the Theory of Social Security and Life Cycle Accumulation.” The American Economic Review 69, no. 3 (1979): 396–410.Google Scholar
  129. Kotlikoff, Laurence J., and Avia Spivak. “The Family as an Incomplete Annuities Market.” Journal of Political Economy 89, no. 2 (1981): 372–91.CrossRefGoogle Scholar
  130. Lagueux, Maurice. Rationality and Explanation in Economics. Routledge Frontiers of Political Economy. Abingdon: Routledge, 2010.CrossRefGoogle Scholar
  131. Laibson, David. Hyperbolic Discount Functions, Undersaving and Savings Policy. NBER Working Paper 5635. Cambridge: National Bureau of Economic Research, 1996.CrossRefGoogle Scholar
  132. ——. “Golden Eggs and Hyperbolic Discounting.” The Quarterly Journal of Economics 112, no. 2 (1997): 443–477.CrossRefGoogle Scholar
  133. ——. “Life-Cycle Consumption and Hyperbolic Discount Functions.” European Economic Review 42, no. 3 (1998): 861–871.CrossRefGoogle Scholar
  134. Laitner John, and Dan Silverman. Estimating Life-Cycle Parameters from Consumption Behavior at Retirement. NBER Working Paper 11163. Cambridge: National Bureau of Economic Research, 2005.Google Scholar
  135. Lee, Ronald, Sang-Hyop Lee, and Andrew Mason. “Charting the Economic Life Cycle.” Population and Development Review 34 (2008): 208–237.Google Scholar
  136. Leff, Nathaniel H. “Dependency Rates and Savings.” The American Economic Review 59, no. 5 (1969): 886–896.Google Scholar
  137. ——. “Dependency Rates and Savings: Another Look.” The American Economic Review 74, no. 1 (1984): 231–233.Google Scholar
  138. Leland, Hayne E. “Saving and Uncertainty: The Precautionary Demand for Saving.” The Quarterly Journal of Economics 82, no. 3 (1968): 465–473.Google Scholar
  139. Lepore, Jill. The Mansion of Happiness. A History of Life and Death. New York: Alfred A. Knopf, 2012.Google Scholar
  140. Lester, David. “Comment on “The Self as a Problem”: Alternative Conceptions of the Multiple Self.” The Journal of Socio-Economics 32, no. 5 (2003): 499–502.CrossRefGoogle Scholar
  141. Leung, Siu Fai. “A Distinction Between Continuous-Time and Discrete-Time Models of Uncertain Lifetime.” Economics Letters 47, nos. 3–4 (1995): 291–296.Google Scholar
  142. Levhari, David, and Leonard J. Mirman. “Savings and Consumption with an Uncertain Horizon.” Journal of Political Economy 85, no. 2 (1977): 265–81.CrossRefGoogle Scholar
  143. Li, Hongbin, Jie Zhang, and Junsen Zhang. “Effects of Longevity and Dependency Rates on Saving and Growth: Evidence from a Panel of Cross Countries.” Journal of Development Economics 84, no. 1 (2007): 138–154.CrossRefGoogle Scholar
  144. Lillard, Lee, and Yoram Weiss. “Uncertain Health and Survival: Effects on End-of-Life Consumption.” Journal of Business & Economic Statistics 2, no. 15 (1997): 254–268.Google Scholar
  145. Loayza, Norman, Klaus Schmidt-Hebbel, and Luis Servén. “What Drives Private Saving Across the World?” Review of Economics and Statistics 82, no. 2 (2000): 165–181.CrossRefGoogle Scholar
  146. Ludwig, Alexander, and Alexander Zimper. “A Parsimonious Model of Subjective Life Expectancy.” Theory and Decision 75, no. 4 (2013b): 519–541.CrossRefGoogle Scholar
  147. Lührmann, Melanie. “Consumer Expenditures and Home Production at Retirement New Evidence from Germany.” German Economic Review 11, no. 2 (2010): 225–245.CrossRefGoogle Scholar
  148. Lusardi, Annamaria. “Financial Literacy and Financial Decision-Making in Older Adults.” Generations 36, no. 2 (2012): 25–32.Google Scholar
  149. Lusardi, Annamaria, and Olivia S. Mitchell. “The Economic Importance of Financial Literacy: Theory and Evidence.” Journal of Economic Literature 52, no. 1 (2014): 5–44.CrossRefGoogle Scholar
  150. Lusardi, Annamaria, Pierre-Carl Michaud, and Olivia S. Mitchell. Optimal Financial Knowledge and Wealth Inequality. Working Paper 18669. Cambridge: National Bureau of Economic Research, 2013.CrossRefGoogle Scholar
  151. Lüth, Erik. Private Intergenerational Transfers and Population Aging: The German Case. Contributions to Economics. Heidelberg: Physica-Verlag HD, 2001.CrossRefGoogle Scholar
  152. ——. “Can Inheritances Alleviate the Fiscal Burden of an Aging Population?” IMF Staff Papers 50, no. 2 (2003): 178–199.Google Scholar
  153. Manzini, Paola, and Marco Mariotti. “Choice Over Time.” The Handbook of Rational and Social Choice An Overview of New Foundations and Applications, Edited by Paul Anand, Prasanta K. Pattanaik, and Clemens Puppe. Chap. 10, 239–270. Oxford: Oxford University Press, 2009.Google Scholar
  154. Mas-Colell, Andreu, Michael D. Whinston, and Jerry R. Green. Microeconomic Theory. Oxford: Oxford University Press, 1995.Google Scholar
  155. Masson, Paul. Effects of Long-Run Demographic Changes in a Multi-Country Model. Working Paper WP/91/123. International Monetary Fund, 1991.Google Scholar
  156. Masson, André, and Pierre Pestieau. “Bequests Motives and Models of Inheritance: A Survey of the Literature.” In: Is Inheritance Legitimate? Edited by Guido Erreygers and Toon Vandevelde. Studies in Economic Ethics and Philosophy. Chap. 3, 54–88. Berlin: Springer, 1997.Google Scholar
  157. Mauss, Marcel. “La cohésion sociale dans les sociétés polysegmentaires.” In: uvres: Cohé- sion sociale et divisions de la sociologie Volume 3. Collection Le sens commun. Éditions de Minuit, 1969.Google Scholar
  158. Mayer, Karl Ulrich. “The Paradox of Global Social Change and National Path Dependencies: Life Course Patterns in Advanced Societies.” In Inclusions and Exclusions in European Societies. Edited by Alison E. Woodward and Martin Kohli. 89–110. London: Routledge, 2001.Google Scholar
  159. ——. “Whose Lives? How History Societies, and Institutions Define and Shape Life Courses.” Research in Human Development 1, no. 3 (2004): 161–187.Google Scholar
  160. Mazur, James E. “Tests of an Equivalence Rule for Fixed and Variable Reinforcer Delays.” Journal of Experimental Psychology: Animal Behavior Processes 10, no. 4 (1984): 426.Google Scholar
  161. McGarry, Kathleen. “Inter Vivos Transfers and Intended Bequests.” Journal of Public Economics 73 (1999): 321–351.CrossRefGoogle Scholar
  162. Meade, James E. “Life-Cycle Savings, Inheritance and Economic Growth.” The Review of Economic Studies 33, no. 1 (1966): 61–78.Google Scholar
  163. Meade, James E. The Growing Economy: Principles of Political Economy. London: George Allen & Unwin Ltd, 1968.Google Scholar
  164. Modigliani, Franco. “The Life Cycle Hypothesis of Saving and Intercountry Differences in the Saving Ratio.” In: Induction, Growth and Trade: Essays in Honour of Sir Roy Harrod. Edited by Walter Eltis, Maurice FitzGerald Scott, and James Nathaniel Wolfe. 197–225. Oxford: Clarendon Press, 1970.Google Scholar
  165. ——. “Life Cycle, Individual Thrift, and the Wealth of Nations.” The American Economic Review 76, no. 3 (1986): 297–313.Google Scholar
  166. Moen, Phyllis. Encore Adulthood: Boomers on the Edge of Risk, Renewal, and Purpose. Oxford: Oxford University Press, 2016.CrossRefGoogle Scholar
  167. Moen, Phyllis, and Jack Lam. “Retirement and Encore Adulthood: The New Later Life Course.” In International Encyclopedia of the Social & Behavioral Sciences. Edited by James D. Wright. 2nd ed., 592–597. Oxford: Elsevier, 2015.Google Scholar
  168. Moldoveanu, Mihnea, and Howard Stevenson. “The Self as a Problem: The Intra-Personal Coordination of Conflicting Desires.” The Journal of Socio-Economics 30, no. 4 (2001): 295–330.CrossRefGoogle Scholar
  169. Moody, Michael. “Serial Reciprocity: A Preliminary Statement.” Sociological Theory 26, no. 2 (2008): 130–151.CrossRefGoogle Scholar
  170. Morgan, Leslie, and Suzanne Kunkel. Aging Society and the Life Course. New York: Springer, 2007.Google Scholar
  171. Munday, Daniel, Jeremy Dale, and Scott Murray. “Choice and Place of Death: Individual Preferences, Uncertainty and the Availability of Care.” Journal of the Royal Society of Medicine 100, no. 5 (2007): 211–215.CrossRefGoogle Scholar
  172. Munnell, Alicia H. The Economics of Private Pensions. Studies in Social Economics 21. Washington, DC: The Brookings Institution, 1982.Google Scholar
  173. Munnell, Alicia H., Geoffrey Sazenbacher, and Sara Ellen King. Do Women Still Spend Most of Their Lives Married? Issue in Brief IB 17–14. Chestnut Hill: Center for Retirement Research at Boston College, 2017.Google Scholar
  174. Nelson, Julie A. “Feminism and Economics.” Journal of Economic Perspectives 9, no. 2 (1995): 131–148.Google Scholar
  175. Nida-Rümelin, Julian. Economic Rationality and Practical Reason. Volume 24. Theory and Decision Library A. New York: Springer Science+ Business Media, 2013.Google Scholar
  176. Nowak, Martin A., and Karl Sigmund. “Evolution of Indirect Reciprocity.” Nature 437, no. 7063 (2005): 1291–1298.CrossRefGoogle Scholar
  177. O’Donnell, Owen, Federica Teppa, and Eddy Van Doorslaer. Can Subjective Survival Expectations Explain Retirement Behaviour?. Working Paper 188. De Nederlandsche Bank, 2008.Google Scholar
  178. O’Donoghue, Ted, and Matthew Rabin. “Doing It Now or Later.” American Economic Review 89, no. 1 (1999): 103–124.CrossRefGoogle Scholar
  179. O’Hara, Phillip A. “Regime of Accumulation (ROA).” In Routledge Encyclopedia of International Political Economy. Edited by R.J. Barry Jones. Vol. 3, 1319–1321. London: Routledge, 2001.Google Scholar
  180. Palumbo, Michael G. “Uncertain Medical Expenses and Precautionary Saving Near the End of the Life Cycle.” Review of Economic Studies 66, no. 2 (1999): 395–421.Google Scholar
  181. Parker, Jonathan. “Euler Equations.” In The New Palgrave Dictionary of Economics. Edited by Steven N. Durlauf and Lawrence E. Blume. Vol. 3, 2nd ed., 45–48. London: Palgrave Macmillan, 2008.Google Scholar
  182. Perozek, Maria G. “A Reexamination of the Strategic Bequest Motive.” Journal of Political Economy 106, no. 2 (1998): 423–445.Google Scholar
  183. Pestieau, Pierre. “Gifts, wills and inheritance law.” In: Contract Law and Economics. Encyclopedia of Law and Economics. Edited by Gerritt de Geest. 2nd ed., Chap. 6, 96–114. Cheltenham: Edward Elgar, 2010.Google Scholar
  184. Phelps, Edmund S., and Robert A. Pollak. “On Second-Best National Saving and Game- Equilibrium Growth.” The Review of Economic Studies 35, no. 2 (1968): 185–199.CrossRefGoogle Scholar
  185. Pickard, Susan. Age Studies: A Sociological Examination of How We Age and are Aged Through the Life Course. London: SAGE Publications, 2016.CrossRefGoogle Scholar
  186. Pigou, A.C. The Economics of Welfare. 4th ed. London: MacMillan and Co, 1932.Google Scholar
  187. Piketty, Thomas. Capital in the Twenty-First Century. Cambridge: Harvard University Press, 2014.CrossRefGoogle Scholar
  188. Pistaferri, Luigi. “The Life-Cycle Hypothesis: An Assessment of Some Recent Evidence.” In Rivista Di Politica Economica IV-VI, pages 35–65, 2009.Google Scholar
  189. Ramsey, Frank Plumpton. “A Mathematical Theory of Saving.” The Economic Journal 38, no. 152 (1928): 543–559.Google Scholar
  190. Ritzer, George. Sociological Theory. 8th ed. New York: McGraw-Hill, 2011.Google Scholar
  191. Rooij, Maarten C.J. van, Annamaria Lusardi, and Rob J.M. Alessie. “Financial Literacy, Retirement Planning and Household Wealth.” The Economic Journal 122 (2012): 449–478.Google Scholar
  192. Rötheli, Tobias F. Expectations, Rationality and Economic Performance: Models and Experiments. Cheltenham: Edward Elgar, 2007.CrossRefGoogle Scholar
  193. Ruggles, Nancy D., and Richard Ruggles. “The Anatomy of Earnings Behavior.” In The Distribution of Economic Well-being. Edited by F. Thomas Juster. Chap. 4, 115–162. Washington, DC: National Bureau of Economic Research, 1977.Google Scholar
  194. Salanié, Francois, and Nicolas Treich. “Over-Savings and Hyperbolic Discounting.” European Economic Review 50, no. 6 (2006): 1557–1570.CrossRefGoogle Scholar
  195. Samuelson, Paul A. “A Note on Measurement of Utility.” The Review of Economic Studies 4, no. 2 (1937): 155–161.Google Scholar
  196. Sanders, Michael, and Sarah Smith. A Warm Glow in the After Life? The Determinants of Charitable Bequests. Working Paper 14/326. Bristol: Department of Economics, University of Bristol, 2014.Google Scholar
  197. Schelling, Thomas C. “Self-Command in Practice, in Policy, and in a Theory of Rational Choice.” The American Economic Review 74, no. 2 (1984): 1–11.Google Scholar
  198. Seidl, Christian. “Preference Reversal.” Journal of Economic Surveys 16, no. 5 (2002): 621–655.CrossRefGoogle Scholar
  199. Serres, Alain de, and Florian Pelgrin. “The Decline in Private Saving Rates in the 1990s in OECD Countries: How Much Can Be Explained by Non-wealth Determinants?” OECD Economic Studies 2003, no. 1 (2003): 117–153.Google Scholar
  200. Sheshinski, Eytan. “Note on longevity and aggregate savings.” The Scandinavian Journal of Economics 108, no. 2 (2006): 353–356.CrossRefGoogle Scholar
  201. Skinner, Jonathan S. “The Effect of Increased Longevity on Capital Accumulation.” The American Economic Review 75, no. 5 (1985): 1143–1150.Google Scholar
  202. Skinner, Jonathan, and Stephen P. Zeldes. “The Importance of Bequests and Life-Cycle Saving in Capital Accumulation: A New Answer.” American Economic Review 92, no. 2 (2002): 274–278.CrossRefGoogle Scholar
  203. Slrelnick, Alvin H., and Margaret Gilpin. “The Family Life Cycle in the Urban Contex.” In Urban Family Medicine. Edited by Richard B. Birrer. 27–41. New York: Springer, 2012.Google Scholar
  204. Smith, Vernon L. Rationality in Economics: Constructivist and Ecological Forms. Cambridge: Cambridge University Press, 2007.CrossRefGoogle Scholar
  205. Soman, Dilip, et al. “The Psychology of Intertemporal Discounting: Why are Distant Events Valued Differently from Proximal Ones?” Marketing Letters 16, no. 3 (2005): 347–360.Google Scholar
  206. Stephens, Christine, Mary Breheny and Juliana Mansvelt. “Volunteering as Reciprocity: Beneficial and Harmful Effects of Social Policies to Encourage Contribution in Older Age.” Journal of Aging Studies 33 (2015): 22–27.CrossRefGoogle Scholar
  207. Stewart, Christopher C., et al. “Associations of APOE ε4 With Health and Financial Literacy Among Community-Based Older Adults Without Dementia.” The Journals of Gerontology Series B: Psychological Sciences and Social Sciences 73, no. 5 (2016): 778-786.Google Scholar
  208. Stokey, Nancy L., and Robert E. Lucas Jr. Recursive Methods in Economic Dynamics. Cambridge: Harvard University Press, 1999.Google Scholar
  209. Stone, Dan, ed. “‘Les Trente Glorieuses’: From the Marshall Plan to the Oil Crisis”. In Crafts, Nicholas and Toniolo, Gianni. Vol. 1, 356–378. Oxford: Oxford University Press, 2012.Google Scholar
  210. Sydsæter, Knut, Peter Hammond, and Anne Strøm. Essential Mathematics for Economic Analysis. Harlow: Pearson, 2012.Google Scholar
  211. Teraji, Shinji. “The Economics of Possible Selves.” The Journal of Socio-Economics 38, no. 1 (2009): 45–51.CrossRefGoogle Scholar
  212. Titmuss, Richard Morris. The Gift Relationship: From Human Blood to Social Policy. London: Allen & Unwin, 1970.Google Scholar
  213. Tobin, James. “Life Cycle Saving and Balanced Growth.” In Ten Economic Studies in the Tradition of Irving Fisher. Edited by James Tobin. 231–256. New York: Wiley, 1967.Google Scholar
  214. Tversky, Amos, and Richard H. Thaler. “Anomalies: Preference Reversals.” The Journal of Economic Perspectives 4, no. 2 (1990): 201–211.CrossRefGoogle Scholar
  215. Twitchell, James B. Living It Up: Our Love Affair with Luxury. New York: Columbia University Press, 2012.Google Scholar
  216. Van Santen, Peter. “Uncertain Pension Income and Household Saving.” 10/2012-034, 2012.Google Scholar
  217. Villanueva, Ernesto. “Inter Vivos Transfers and Bequests in Three OECD Countries.” Economic Policy 20, no. 43 (2005): 505–565.CrossRefGoogle Scholar
  218. Walker, Franklin V. “Income Growth and Hump Saving.” Economic Inquiry 1, no. 1 (1962): 1–11.Google Scholar
  219. Webb, Steven B., and Heidi S. Zia. The Effect of Demographic Changes on Saving for Life Cycle Motives in Developing Countries. Policy Planning, and Research Working Paper 229. The World Bank, 1989.Google Scholar
  220. Weil, David N. “The Economics of Population Aging.” In: Handbook of Population and Family Economics 1b. Edited by Mark R. Rosenzweig and Oded Stark. Handbooks in Economics. Chap. 17, 968–1014. Amsterdam: Elsevier, 1997.Google Scholar
  221. Weintraub, E. Roy. Microfoundations: The Compatibility of Microeconomics and Macroeconomics. Cambridge Edition of the Letters and Works of D.H. Lawrence. Cambridge: Cambridge University Press, 1979.CrossRefGoogle Scholar
  222. Wheelock, Jane, and Elizabeth Oughton. “The Household as a Focus for Research.” Journal of Economic Issues 30, no. 1 (1996): 143–159.CrossRefGoogle Scholar
  223. WHO. World Report on Ageing and Health. Geneva: World Health Organisation, 2015.Google Scholar
  224. Widmer, Eric D., and Gilbert Ritschard. “The De-Standardization of the Life Course: Are Men and Women Equal?” Advances in Life Course Research 14, no. 1 (2009): 28–39.CrossRefGoogle Scholar
  225. Wong, Benjamin, and Kam Ki Tang. “Do Ageing Economies Save Less? Evidence from OECD Data.” International Journal of Social Economics 40, no. 6 (2013): 591–605.Google Scholar
  226. Wu, Shang, Ralph Stevens, and Susan Thorp. “Cohort and Target Age Effects on Subjective Survival Probabilities: Implications for Models of the Retirement Phase.” Journal of Economic Dynamics and Control 55 (2015): 39–56.CrossRefGoogle Scholar
  227. Yaari, Menahem E. “Uncertain Lifetime, Life Insurance, and the Theory of the Consumer.” The Review of Economic Studies 32, no. 2 (1965): 137–150.Google Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • José Luis Iparraguirre
    • 1
    • 2
  1. 1.University of MorónBuenos AiresArgentina
  2. 2.Age UKLondonUK

Personalised recommendations