Journal Article
Wealth Effects with Endogenous Retirement
Zhang, Yuzhe; Grochulski, Borys (2019-07)
In this article, we study wealth effects, i.e., the response of consumption to exogenous changes in wealth. We use a consumption-saving model with endogenous retirement to show that the endogenous response of the value of a worker's human capital to changes in her wealth helps to account for the weak wealth effects observed in the data.
Economic Quarterly , Issue 3Q , Pages 173-200