Merge pull request #18 from mnwhite/main

Add four more countries for drawdown failure

Author: mnwhite

docs/life-cycle-prime-time.md

@@ -282,7 +282,7 @@ This also serves to constrain the model's ability to fit the data by declining t
 Beyond those basic assumptions, we calibrate the model to include uncertainty after retirement.
 Specifically, we assume that there are expenditure shocks in retirement that can reduce *disposable* income net of exogenous expenditures by maintaining transitory income shocks at their age-64 variance (while zeroing out permanent income shocks); see also @flExpShocks for a recent estimation of expense shocks.
 This assumption acts as a kind of shorthand for other modeling assumptions that focus on modeling the dynamics of medical and nursing home expenses in old age, e.g. @ameriks2011joy and @DeNardi2010.
-Even if old age medical expenses were incorporated into the model more realistically, this feature *cannot* be the primary explanation for the drawdown failure, as the phenomenon has been documented even in countries with much more robust public health insurance than the United States (e.g., see @Hattrem2022 for wealth accumulation among retired Norwegians, or @AustralianWealth2021 for Australians).
+Even if old age medical expenses were incorporated into the model more realistically, this feature *cannot* be the primary explanation for the drawdown failure, as the phenomenon has been documented even in countries with much more robust public health insurance than the United States, including Sweden (@Ljunge2013), Norway (@Hattrem2022), Australia (@AustralianWealth2021), Canada (@Hamilton2001), Japan (@Niimi2018), and the United Kingdom (@Crawford2018).
 In principle, the presence of such shocks provides a precautionary motive to draw down wealth more slowly.
 However, our estimation results show that even when we include this calibration of expense shocks, the model still predicts much more drawdown of wealth than the data show.
 

docs/references.bib

@@ -154,6 +154,14 @@ @article{CarrollEGM
 	year =          {2006},
 }
 
+@techreport{Crawford2018,
+  title = 	{The use of financial wealth in retirement},
+  author =	{Rowena Crawford},
+  year = 	{2018},
+  institution =	{The Institute for Fiscal Studies},
+  isbn = 	{978-1-911102-94-6},
+}
+
 @article{DeNardi2004,
   title     = {Wealth {Inequality} and
                {Intergenerational Link}s},
@@ -575,6 +583,18 @@ @article{Gale1994
   doi       = {10.2139/ssrn.2461797}
 }
 
+@chapter{Hamilton2001,
+publisher={Centre for the Study of Living Standards},
+series={The State of Economics in Canada: Festschrift in Honour of David Slater},
+booktitle={The State of Economics in Canada: Festschrift in Honour of David Slater},
+author={Malcolm Hamilton},
+title={The Financial Circumstances of Elderly Canadians and the Implications for the Design of Canada's Retirement Income System},
+year={2001},
+month={November},
+pages={225-253},
+}
+
+
 @techreport{Hattrem2022,
   title     = {Mindre inntekter, men storre formue for pensjonistene},
   author    = {Aurora Hattrem},
@@ -806,6 +826,14 @@ @article{Kvaerner2023
   doi         = {10.1093/rfs/hhac093}
 }
 
+@article{Ljunge2013,
+  title =	{The Drawdown of Assets during Retirement: Evidence from Sweden},
+  author = 	{Martin Ljunge and Lee Lockwood and Dayanand Manoli},
+  year =	{2013},
+  journal =	{NBER Working Paper},
+  number =	{NB13-03},
+}
+
 @article{Lockwood2018,
   title     = {Incidental bequests and the choice to self-insure late-life
                risks},
@@ -947,6 +975,14 @@ @article{Modigliani1988
   doi       = {10.1257/jep.2.2.15}
 }
 
+@article{Niimi2018,
+  title =	{The wealth decumulation behavior of the retired elderly in Japan: The relative importance of precautionary saving and bequest motives},
+  author = 	{Yoko Niimi and Charles Horioka},
+  year =	{2018},
+  journal =	{ISER Discussion Paper},
+  number =	{1042},
+}
+
 @article{Poterba1986,
   title     = {Money in the utility function: An empirical implementation},
   author    = {Poterba, J M and Rotemberg, J J},