Our article empirically considers two general hypotheses related to the literature of behavioural economics. First, we test the null hypothesis that individuals behave, on average, in a manner more consistent with the rational expectations hypothesis than with the idea of self-control
in the face of hyperbolic discounting in their saving decisions. Second, along a variety of dimensions, we examine whether individuals exhibit Herbert Simon's notion that the goal formation of individuals will differ depending upon their relative levels of experience and knowledge. Perhaps
there are significant differences among groups in their saving decisions that depend upon their apparent levels of intelligence, education and knowledge. Finally, using a variety of individual-specific control variables, we test for robustness of the results.
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life cycle models and saving
Document Type: Research Article
School of Business,Henderson State University, HSU Box 7890, 1100 Henderson StreetArkadelphia,AR 71999-0001, USA
Wintrust Financial Corporation, 9700 West Higgins Road, 4th FloorRosemont,IL 60018, USA
Wells Fargo Advisors LLC, 2025 E. Beltline Ave SE Suite 501Grand Rapids,MI 49546, USA
Publication date: 01 July 2013
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