TY  - RPRT
        AU  - Blau, David M.
        TI  - Retirement and Consumption in a Life Cycle Model
        PY  - 2007/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2986
        UR  - https://www.iza.org/publications/dp2986
        AB  - Consumption expenditure declines sharply at the time of retirement for many households, but the majority maintain a smooth consumption path. A simple life cycle model with uncertainty about the time of retirement can account for this pattern. A richer version of the model is calibrated to data from the Health and Retirement Study. The median change in consumption expenditure at retirement generated by the model is zero, while the mean is negative, matching the HRS data. However, the magnitude of the drop in consumption among households that experience a decline is too small in the model compared to the data.
        KW  - saving
KW  - consumption
KW  - retirement
KW  - life cycle model
        ER  -