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Interdependent Durations in Joint Retirement
Publication Date: February 2011
Publisher(s): Center for Retirement Research at Boston College
Author(s): Bo Honore; Aureo de Paula
Series:
Topic: Economics (Consumers and consumption)
Economics (Economic conditions)
Economics (Economic theory)
Keywords: work and retirement
Type: Report
Coverage: United States
Abstract:
In this paper, we use a novel duration model to study joint retirement in married couples using the Health and Retirement Study. Whereas conventionally used models cannot account for joint retirement, our model admits joint retirement with positive probability and nests the traditional proportional hazards model. In contrast to other statistical models for simultaneous durations, it is based on Nash bargaining and is interpretable as an economic behavior model. Our estimation strategy relies on indirect inference.