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Efficiency in Household Decision Making: Evidence from the Retirement Savings of U.S. Couples / Taha Choukhmane, Lucas Goodman, Cormac O'Dea.
- Format:
- Book
- Author/Creator:
- Choukhmane, Taha.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w31195.
- NBER working paper series no. w31195
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2023.
- Summary:
- Pareto Efficiency is a core assumption of most models of household decision-making. We test this assumption using a new dataset covering the retirement saving contributions of over a million U.S. individuals. While a vast literature has failed to reject household efficiency in developed countries, we find evidence of widespread inefficiency in our setting: retirement contributions are not allocated to the account of the spouse with the highest employer match rate. This lack of coordination cannot be explained by inertia, auto-enrollment, or simple heuristics. Instead, we find that indicators of weaker marital commitment correlate with the incidence of inefficient allocations.
- Notes:
- Print version record
- April 2023.
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