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Theoretical considerations on the retirement consumption puzzle and the optimal age of retirement

Abstract : Defining retirement as a discontinuity in the labor supply of the agent, this paper resolves the retirement consumption puzzle in a very general model of in-tertemporal choice of consumption and savings of a fully rational, forward looking, agent. Building on a specific version of Bellman (1957) principle of optimality, it provides a very general and parsimonious formula for determining the optimal age of retirement taking into account the possible discontinuity of the optimal consumption profile at the age of retirement. Code JEL: C61 D91 J26
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https://halshs.archives-ouvertes.fr/halshs-01767096
Contributor : Nicolas Drouhin <>
Submitted on : Sunday, April 15, 2018 - 4:52:46 PM
Last modification on : Tuesday, August 4, 2020 - 3:50:12 AM

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Nicolas Drouhin. Theoretical considerations on the retirement consumption puzzle and the optimal age of retirement. 2018. ⟨halshs-01767096⟩

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