Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/107300
Authors: 
Findley, T. Scott
Caliendo, Frank N.
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5208
Abstract: 
Hyperbolic discounting with naiveté is widely believed to provide a better explanation than exponential discounting of why people borrow so much and why they wait so long to save for retirement. We reach a different set of conclusions. We show that if financial planning is enriched to include the choice of when to retire, then naïve hyperbolic discounters may borrow far less and start saving for retirement significantly earlier than exponential discounters.
Subjects: 
hyperbolic discounting
naiveté
retirement choice
time inconsistency
life-cycle consumption and saving
JEL: 
C61
D03
D91
Document Type: 
Working Paper

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