NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Asset Holdings and the Life Cycle

Mervyn A. King, Louis Dicks-Mireaux

NBER Working Paper No. 614 (Also Reprint No. r0301)
Issued in August 1982
NBER Program(s):   PE

Empirical studies of the life cycle savings model have tended to rej ect the hypothesis of a "hump-shaped" pattern for the wealth-age profile. In this paper we show, using new data on net worth for 12,734 families, that there is evidence that wealth declines after retirement provided that we control for differences in permanent income and take account of sample selection bias. The estimated rates of decumulation are consistent with a life cycle model in which there is uncertainty about the date of death.

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Published: King, M. A. and Dicks-Mireaux, L-D. L. "Asset Holdings and the Life Cycle." Economic Journal, Vol. 92, No. 366 (June 1982), pp. 247-267.

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