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Optimal retirement age, leisure and consumption

✍ Scribed by Mao, Hong; Ostaszewski, Krzysztof M.; Wang, Yuling


Book ID
127379696
Publisher
Elsevier Science
Year
2014
Tongue
English
Weight
688 KB
Volume
43
Category
Article
ISSN
0264-9993

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We examine consumption and investment decisions in a life-cycle model with habit formation, stochastic opportunity set, stochastic wages and labor supply exibility. Retirement is taken into account by specifying an age at which labor earnings stop, but consumption spending continues. Explicit soluti