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Economics and Ageing pp 255–334Cite as

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Life-Cycle Framework

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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.

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    José Luis Iparraguirre

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    José Luis Iparraguirre

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Iparraguirre, J.L. (2018). Life-Cycle Framework. In: Economics and Ageing. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-93248-4_8

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