BPEA | 1998 No. 1

Self-Control and Saving for Retirement

discussants: George A. Akerlof,
George A. Akerlof Daniel E. Koshland, Sr. Distinguished Professor Emeritus of Economics - University of California, Berkeley
Robert E. Hall, and
Robert Hall Headshot
Robert E. Hall Robert and Carole McNeil Joint Hoover Senior Fellow and Professor of Economics - Stanford University
William G. Gale
William G. Gale The Arjay and Frances Fearing Miller Chair in Federal Economic Policy, Senior Fellow - Economic Studies, Co-Director - Urban-Brookings Tax Policy Center

1998, No. 1

CONSUMERS FACE TWO challenges: making good decisions and sticking
to them. Economists have adopted optimistic assumptions on both
counts. The consumers in mainstream economic models are assumed
both to be exceptionally good decisionmakers and to be able to carry
out their plans. These economic assumptions are dubious, particularly
in regard to saving for retirement.