Time-inconsistent life-cycle consumption and retirement choice with mortality risk
作者：
Highlights：
• We obtain analytical solutions of the optimal life-cycle consumption and retirement choice with mortality risk and various forms of discounting preference.
• Two intuitive budget constraints are established to demonstrate the effects of precautionary saving and bequest motives on the optimal choices.
• An individual with more decreasing impatience takes lower consumption at early and middle working ages that leads to more savings at retirement, and higher consumption in late working ages and after retirement, resulting in more debt in late life.
摘要
•We obtain analytical solutions of the optimal life-cycle consumption and retirement choice with mortality risk and various forms of discounting preference.•Two intuitive budget constraints are established to demonstrate the effects of precautionary saving and bequest motives on the optimal choices.•An individual with more decreasing impatience takes lower consumption at early and middle working ages that leads to more savings at retirement, and higher consumption in late working ages and after retirement, resulting in more debt in late life.
论文关键词：Life-cycle consumption,Retirement,Euler-Lagrange equation,Mortality risk,Time-inconsistency
论文评审过程：Received 9 December 2021, Revised 30 March 2022, Accepted 7 July 2022, Available online 23 July 2022, Version of Record 23 July 2022.
论文官网地址：https://doi.org/10.1016/j.amc.2022.127396
