Abstract
Saving for retirement is an extremely important thing that all consumers must consider as they age. With the many other important financial decisions that must be made throughout consumers' lifetimes, saving for retirement may sometimes be forgotten. However, with many government programs such as social security coming into question, consumers must become informed about the decisions that they must make if they are going to want to live comfortably in their retirement. This study investigates the decisions that consumers must make when saving for retirement, and specifically looks at the types of assets that consumers invest in and how they relate to their savings. This study uses the theories of intertemporal choice and exponential and hyperbolic discounting to show how consumers make decisions in multiple time periods according to their preferences. Using the framework for these theories, I have constructed an empirical model using data from the Survey of Consumer Finances to test my hypotheses. The ultimate goal of this study is to show the effect that investing in illiquid assets has on consumers' retirement savings.
Advisor
Mellizo, Philip
Department
Business Economics
Recommended Citation
White, Seth, "Solving the Retirement Savings Puzzle: How Illiquid Assets Can Help Hyperbolic Consumers Reach Their Retirement Savings Goals" (2013). Senior Independent Study Theses. Paper 792.
https://openworks.wooster.edu/independentstudy/792
Disciplines
Economics
Keywords
retirement savings, intertemporal choice, behavioral economics, hyperbolic discounting, economics, consumer finance, consumer behavior
Publication Date
2013
Degree Granted
Bachelor of Arts
Document Type
Senior Independent Study Thesis
© Copyright 2013 Seth White