Some empirical studies show that the discount rate is higher for short horizons than for long horizons what suggests that the discount function would be hyperbolic or quasihyperbolic and not exponential. This paper examines how quasihyperbolic discounting influences the retirement decision with respect to exponential discounting. In a 3period model in which the retirement decision is endogenous in period 2, we investigate whether people displaying a quasihyperbolic discount function retire earlier or later than people displaying an exponential discount function. We show that the retirement decision depends effectively on the discount function we consider and that quasihyperbolic discounting, even if it does not provide a general explanation for early retirement, may explain, in some cases, this phenomenon.
langue originale  Anglais 

Etat de la publication  Non publié  2009 

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@misc{a90c1ef5d7ed48c09678e8e50c871bca,
title = "Retirement Decision : Does the discount function matter?",
abstract = "Some empirical studies show that the discount rate is higher for short horizons than for long horizons what suggests that the discount function would be hyperbolic or quasihyperbolic and not exponential. This paper examines how quasihyperbolic discounting influences the retirement decision with respect to exponential discounting. In a 3period model in which the retirement decision is endogenous in period 2, we investigate whether people displaying a quasihyperbolic discount function retire earlier or later than people displaying an exponential discount function. We show that the retirement decision depends effectively on the discount function we consider and that quasihyperbolic discounting, even if it does not provide a general explanation for early retirement, may explain, in some cases, this phenomenon.",
author = "Vincent Frogneux",
year = "2009",
language = "English",
type = "Other",
}
TY  GEN
T1  Retirement Decision : Does the discount function matter?
AU  Frogneux, Vincent
PY  2009
Y1  2009
N2  Some empirical studies show that the discount rate is higher for short horizons than for long horizons what suggests that the discount function would be hyperbolic or quasihyperbolic and not exponential. This paper examines how quasihyperbolic discounting influences the retirement decision with respect to exponential discounting. In a 3period model in which the retirement decision is endogenous in period 2, we investigate whether people displaying a quasihyperbolic discount function retire earlier or later than people displaying an exponential discount function. We show that the retirement decision depends effectively on the discount function we consider and that quasihyperbolic discounting, even if it does not provide a general explanation for early retirement, may explain, in some cases, this phenomenon.
AB  Some empirical studies show that the discount rate is higher for short horizons than for long horizons what suggests that the discount function would be hyperbolic or quasihyperbolic and not exponential. This paper examines how quasihyperbolic discounting influences the retirement decision with respect to exponential discounting. In a 3period model in which the retirement decision is endogenous in period 2, we investigate whether people displaying a quasihyperbolic discount function retire earlier or later than people displaying an exponential discount function. We show that the retirement decision depends effectively on the discount function we consider and that quasihyperbolic discounting, even if it does not provide a general explanation for early retirement, may explain, in some cases, this phenomenon.
M3  Other contribution
ER 