Discussion Papers no. 697

Results from an extended life cycle model

The effect of pension wealth on private savings

Publisert:

Åpne og les publikasjonen i PDF (32 sider)

An extended life cycle model is used to investigate how variation in the level of expected pensions influences non-pension wealth accumulation. We try to explain why the offset effects between pension wealth and private savings are not one to one by accounting for different risks and market imperfections, which includes uninsured risk on earnings, mortality risk, borrowing constraints and bequest motive. The model is calibrated on Norwegian household data from 1992 to 2005. Based on the calibrated model, simulations are performed to explore consequences of introducing these factors. The result shows that by simply accounting these risks and constraints, we can explain most of the departure between empirical findings and theoretical prediction.

Om publikasjonen

Tittel

The effect of pension wealth on private savings. Results from an extended life cycle model

Ansvarlige

Zhiyang Jia, Weizhen Zhu

Serie og -nummer

Discussion Papers no. 697

Utgiver

Statistics Norway

Emne

Discussion Papers

ISSN

1892-753X

Antall sider

32

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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