earticle

영어

In this paper we study consumption-labor supply decision of an agent who prepares for retirement at a known time in the future. The agent is assumed to have a preference which is represented by a von Neumann-Morgenstern utility function in which the felicity function has constant relative risk aversion over the composite of consumption and leisure. The composite is obtained by a Cobb-Douglas function. A general problem has been studied by Bodie, Detemple, Otruba, and Walter (2004). We contribute to the literature by deriving Slutsky equations and conduct comparative statics. In particular, we show that the wealth eect can exhibit interesting property depending upon the time until retirement, as the interest rate increases.