Rules of Thumb in Life-Cycle Saving Decisions

Research, Preprint OPEN
Winter, Joachim ; Schlafmann, Kathrin ; Rodepeter, Ralf (2011)
  • Publisher: Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät München
  • Related identifiers: doi: 10.5282/ubm/epub.12334
  • Subject: bounded rationality | Sparen | Munich Discussion Papers in Economics | E21 | saving; life-cycle models; bounded rationality; rules of thumb | Konsumtheorie | saving | Entscheidung bei Unsicherheit | life-cycle models | Zeitpräferenz | Volkswirtschaft | rules of thumb | Beschränkte Rationalität | D91 | Einkommenshypothese | Lebenszyklus | Theorie | Seminar für empirische Wirtschaftsforschung
    • jel: jel:E21 | jel:D91
      ddc: ddc:330 | ddc:300

We analyse life-cycle saving decisions when households use simple heuristics, or rules of thumb, rather than solve the underlying intertemporal optimization problem. We simulate life-cycle saving decisions using three simple rules and compute utility losses relative to ... View more
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