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Heterogeneity in consumers’ income and pension expectations*

Published online by Cambridge University Press:  01 October 2015

LUC BISSONNETTE  and
ARTHUR VAN SOEST
LUC BISSONNETTE
Affiliation:
Université Laval, Pavillon J.-A. de Sève, Québec City, G1V OA6, Canada (e-mail: Luc.Bissonnette@ecn.ulaval.ca)
ARTHUR VAN SOEST
Affiliation:
Netspar, Tilburg University, Warandelaan 2, 5037 AB Tilburg, The Netherlands (e-mail: A.H.O.vanSoest@uvt.nl)
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Abstract

The expectations of economic agents play a crucial role in almost any inter-temporal economic model. Using 2009–12 panel data for a representative sample of the Dutch population, we analyze consumers’ income and pension expectations. We focus on heterogeneity across socioeconomic groups and associations with how consumers perceive the economic and financial crisis. We find that pension expectations become more pessimistic over the 4 years, in line with pension reforms and the crisis. We find substantial differences across groups that are generally plausible and in line with financial theory.

Keywords

D84H55J26Subjective probabilitiesretirementreplacement rates
Type
Articles
Information
Journal of Pension Economics & Finance , Volume 14 , Special Issue 4: Household Finance , October 2015 , pp. 439 - 465
Copyright
Copyright © Cambridge University Press 2015 

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Footnotes

*

We are grateful to the guest editor and a referee for constructive comments that helped to improve the paper. We acknowledge financial support from the Industrielle Alliance Research Chair on the Economics of Demographic Change and from the National Institute of Aging (grant number PO1 AG008291).

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