Tag: saving
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…
Abstract Income tax provisions affect the buildup of retirement assets during workers’ careers and after-tax income following retirement. This paper uses the Urban Institute’s DYNASIM model to simulate how potential changes in the tax treatment of retirement saving, Social Security benefits, and income from assets outside of retirement accounts may affect boomers’ retirement incomes. Results…
