Abstract: Pareto efficiency is a core assumption of most models of the household. We test this assumption using a new dataset covering the retirement saving contributions of 1.3 million U.S. couples. While a vast literature has failed to reject household efficiency in developed countries, we find evidence of widespread inefficiency in our setting: retirement contributions are not allocated to the account of the spouse with the highest employer match rate. This lack of coordination cannot be explained by inertia, auto-enrollment, or simple heuristics. Instead, we find that indicators of weaker marital commitment correlate with the incidence of inefficient allocations.
You are welcome to gather with others in Room 517 of 19 W. 4th St. to participate as a group via Zoom. Please look for the sign-in sheet. It is mandatory to complete it.
If you would like to be added to the distribution list or for further details regarding this seminar, please contact Sharon Traiberman at st1012@nyu.edu.