The Retirement Consumption Puzzle: Evidence from a Regression Discontinuity Approach
Erich Battistin (),
Agar Brugiavini (),
Enrico Rettore () and
Guglielmo Weber ()
American Economic Review, 2009, vol. 99, issue 5, 2209-26
We investigate the size of the consumption drop at retirement in Italy by exploiting pension eligibility information to correct for endogenous retirement. We take a regression discontinuity approach and assume that spending would be smooth around pension eligibility if individuals did not retire. We estimate a 9.8 percent drop associated to retirement. This fall is not driven by liquidity problems for the less well off and can be accounted for by drops in work-related expenses. Retirement also induces a significant drop in the number of grown children living with their parents and this explains most of the retirement consumption drop. (JEL D91, E21, J26, J31)
JEL-codes: D91 E21 J26 J32 (search for similar items in EconPapers)
Note: DOI: 10.1257/aer.99.5.2209
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (109) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to AEA members and institutional subscribers.
Working Paper: The retirement consumption puzzle: evidence from a regression discontinuity approach (2008)
Working Paper: The Retirement Consumption Puzzle: Evidence from a Regression Discontinuity Approach (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:99:y:2009:i:5:p:2209-26
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Review is currently edited by Esther Duflo
More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().