What others have done Banks, Blundell and Tanner(1998)use repeated cross section data from the fes -they estimate log- linear Euler equations from cohort data by iv(using lagged interest rates, consumption and income growth as instruments) and find unexplained negative residuals around typical male retirement ages(60-67) he largest residual obtains at age 63(1.5% Altogether, cumulated residual are in the 8-10% region Non-separabilities between leisure and consumption can explain only part of the dropWhat Others Have Done • Banks, Blundell and Tanner (1998) use repeated cross section data from the FES – they estimate log￾linear Euler equations from cohort data by IV (using lagged interest rates, consumption and income growth as instruments) and find unexplained negative residuals around typical male retirement ages (60-67). • The largest residual obtains at age 63 (1.5%). Altogether, cumulated residual are in the 8-10% region. • Non-separabilities between leisure and consumption can explain only part of the drop