Simulating household savings and labour supply: an application of dynamic programming.
Sefton, James ; van de Ven, Justin
National Institute Economic Review
2004
188
April
56-67
household ; household income ; labour supply ; private pension scheme ; saving ; statistical evaluation
Social protection - Old age benefits
English
Bibliogr.
"This paper describes a fully behavioural microsimulation model that has recently been developed at the National Institute for considering responses to changes in pension policy of household savings and labour supply. The model generates household decisions regarding labour/leisure, and consumption/savings by solving a dynamic programming problem over the simulated lifetime. This analytical framework incorporates a degree of complexity that is usually omitted from econometric analyses that are common in the literature."
Paper
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