Simulating household savings and labour supply: an application of dynamic programming

Publication type

Journal Article

Authors

Publication date

June 1, 2004

Abstract:

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.

Published in

National Institute Economic Review

Volume

Volume: 188 (Apr):56-72

Subjects

Notes

Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

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