Rules of thumb in life-cycle savings models

Research, Preprint OPEN
Rodepeter, Ralf ; Winter, Joachim (1999)
  • Subject: 330 Wirtschaft

We analyze life-cycle savings decisions when households use simple heuristics, or rules of thumb, rather than solve the underlying intertemporal optimization problem. The decision rules we explore are a simple Keynesian rule where consumption follows income; a simple co... View more
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