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Hidden Group Time Profiles: Heterogeneous Drawdown Behaviours in Retirement

Igor Balnozan, Denzil G. Fiebig, Anthony Asher, Robert Kohn, Scott A. Sisson

arXiv 3 Sep 2020 · Econometrics

arXiv:2009.01505 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This article investigates retirement decumulation behaviours using the Grouped Fixed-Effects (GFE) estimator applied to Australian panel data on drawdowns from phased withdrawal retirement income products. Behaviours exhibited by the distinct latent groups identified suggest that retirees may adopt simple heuristics determining how they draw down their accumulated wealth. Two extensions to the original GFE methodology are proposed: a latent group label-matching procedure which broadens bootstrap inference to include the time profile estimates, and a modified estimation procedure for models with time-invariant additive fixed effects estimated using unbalanced data.

Citation extraction

12
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appendix boundary found by appendix_titled_section at “Appendix: Account balance decomposition” · 86% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1bateman2008choices APACrefauthors Bateman, H. \ Thorp, S. APACrefaut… (2008) 20081.00053100%
2bonhomme2015grouped APACrefauthors Bonhomme, S. \ Manresa, E. APACre… (2015) 20150.94532584%
3horneff2008following APACrefauthors Horneff, W J. , Maurer, R H. , M… (2007) 20080.64441100%
4Treas2016 APACrefauthors The Australian Government the Treasury. APA… (2016) 20160.40511100%
5bai2009panel APACrefauthors Bai, J. APACrefauthors \ (2009) 20090.40511100%
6bonhomme2021discretizing APACrefauthors Bonhomme, S. , Lamadon, T. \… (2022) 20220.40511100%
7deb2013finite APACrefauthors Deb, P. \ Trivedi, P K. APACrefauthors \ 20130.40511100%
8hofmans2015added APACrefauthors Hofmans, J. , Ceulemans, E. , Steinl… (2015) 20150.40511100%
9jacobs1991adaptive APACrefauthors Jacobs, R A. , Jordan, M I. , Nowl… (1991) 19910.40511100%
10jordan1994hierarchical APACrefauthors Jordan, M I. \ Jacobs, R A. AP… (1994) 19940.40511100%

Showing the top 10 of 12 scored citations.