TY  - RPRT
        AU  - Goda, Gopi Shah
AU  - Levy, Matthew R.
AU  - Manchester, Colleen Flaherty
AU  - Sojourner, Aaron
AU  - Tasoff, Joshua
        TI  - Predicting Retirement Savings Using Survey Measures of Exponential-Growth Bias and Present Bias
        PY  - 2018/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 11762
        UR  - https://www.iza.org/publications/dp11762
        AB  - In a nationally-representative sample, we predict retirement savings using survey-based elicitations of exponential-growth bias (EGB) and present bias (PB). We find that EGB, the tendency to neglect compounding, and PB, the tendency to value the present over the future, are highly significant and economically meaningful predictors of retirement savings. These relationships hold controlling for cognitive ability, financial literacy, and a rich set of demographic controls. We address measurement error as a potential confound and explore mechanisms through which these biases may operate. Back of the envelope calculations suggest that eliminating EGB and PB would increase retirement savings by approximately 12 percent.
        KW  - survey-based elicitations
KW  - exponential-growth bias
KW  - present bias
KW  - financial literacy
KW  - quasi-hyperbolic discounting
KW  - retirement savings
KW  - household finance
        ER  -