Archive:
The brief’s key findings are: The financial crisis stressed the Dutch pension system, as assets dropped below the required 105 percent of liabilities. Automatic indexation adjustments, introduced in recent years, may not be sufficient to restore solvency. Policymakers now have to consider more substantial measures, which affect retirees and workers differently. This process highlights t…
Abstract We develop and test a simple model of limited attention in intertemporal choice. The model posits that individuals fully attend to consumption in all periods but fail to attend to some future lumpy expenditure opportunities. This asymmetry generates some predictions that overlap with other models of present-bias. Our model also generates the unique predictions…
