DISCOUNTING, COGNITION, AND FINANCIAL AWARENESS: NEW EVIDENCE FROM A CHANGE IN THE MILITARY RETIREMENT SYSTEM.

The choice given military personnel between an immediate cash payment of $30,000 or a more generous retirement pension permits us to estimate individuals' personal discount rates ( PDRs). The resulting PDRs, about 7% for enlisted personnel and 2%-4.3% for officers, are precise and are correlated wit...

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Detalles Bibliográficos
Publicado en:	Economic Inquiry Vol. 53; no. 1; pp. 318 - 335
Autores principales:	Simon, Curtis J., Warner, John T., Pleeter, Saul
Formato:	Artículo
Publicado:	Wiley-Blackwell Jan2015
Materias:	Pensions Economic history Government policy Military retirements American military personnel Retirement & economics
Acceso en línea:	Ver este registro en EBSCOhost

Descripción
Sumario:	The choice given military personnel between an immediate cash payment of $30,000 or a more generous retirement pension permits us to estimate individuals' personal discount rates ( PDRs). The resulting PDRs, about 7% for enlisted personnel and 2%-4.3% for officers, are precise and are correlated with a variety of other financial behaviors. The PDR is negatively related to educational attainment and the Armed Forces Qualification Test, but cognition seems to operate through channels other than being better informed; better-informed individuals were not always measured to be more patient. ( JEL D91, D14)