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May 23, 2006
PPF - Optimal Saving for Retirement
Introducing a Production Possibility Frontier allows us to extend the Intertemporal Substitution framework to study the optimial saving for retirement. We also demonstrate that people benefit from the existence of financial markets in that they attain higher utilities than would otherwise be possible.
As a bonus, we considered the effects of making the interest on retirement savings tax free.
Posted by bparke at May 23, 2006 08:56 PM