What others have done Bernheim, Skinner and Weinberg(2001)use panel data from the psid to estimate euler equations Retirement status is instrumented by taking age specific predicted probabilities conditional on demographics(however cannot explain spikes at ages 62 and 65) Median drop is 14%, but higher for low wealth Sample is split in groups: low wealth-to-income households drop their consumption most 31%of households reduce their consumption by at least 35 percentage points at retirement• Bernheim, Skinner and Weinberg (2001) use panel data from the PSID to estimate Euler equations. Retirement status is instrumented by taking age￾specific predicted probabilities conditional on demographics (however cannot explain spikes at ages 62 and 65). • Median drop is 14%, but higher for low wealth • Sample is split in groups: low wealth-to-income households drop their consumption most. • “31% of households reduce their consumption by at least 35 percentage points at retirement”. What Others Have Done