Economics at your fingertips  

Pension Contributions as a Commitment device: evidence of sophistication among time-inconsistent households

Patricia Sourdin
Additional contact information
Patricia Sourdin: The University of Adelaide

Public Economics from University Library of Munich, Germany

Abstract: Sophisticated agents with self-control problems value commitment devices that constrain future choices. Using Australian household data, I test whether these households value commitment devices in the form of illiquid pension contributions. Applying various probabilistic choice models, the results confirm the conjecture that households with problems of self-control are more likely to invest in illiquid pensions while less likely to hold very liquid forms of assets.

Keywords: commitment device; pensions; intertemporal choice (search for similar items in EconPapers)
JEL-codes: D91 H31 E21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm, nep-mac and nep-pbe
Date: 2005-12-12
Note: Type of Document - pdf
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Public Economics from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ().

Page updated 2019-10-04
Handle: RePEc:wpa:wuwppe:0512009