Fedor Iskhakov

Optimal Annuity Purchases for Australian Retirees

Publisher: Wiley

Date: 13-04-2015

DOI: 10.1111/1475-4932.12183

Multidimensional endogenous gridpoint method: Solving triangular dynamic stochastic optimization problems without root-finding operations

Publisher: Elsevier BV

Date: 10-2015

DOI: 10.1016/J.ECONLET.2015.07.033

THE DYNAMICS OF BERTRAND PRICE COMPETITION WITH COST‐REDUCING INVESTMENTS

Publisher: Wiley

Date: 27-08-2018

DOI: 10.1111/IERE.12317

Effects of Taxes and Safety Net Pensions on Life-Cycle Labor Supply, Savings and Human Capital: The Case of Australia

Publisher: Elsevier BV

Date: 2018

DOI: 10.2139/SSRN.3182093

Comment on Constrained Optimization Approaches to Estimation of Structural Models

Publisher: The Econometric Society

Date: 2016

DOI: 10.3982/ECTA12605

Structural dynamic model of retirement with latent health indicator

Publisher: Oxford University Press (OUP)

Date: 21-09-2010

DOI: 10.1111/J.1368-423X.2010.00318.X

Default and naive diversification heuristics in annuity choice

Publisher: SAGE Publications

Date: 23-06-2017

DOI: 10.1177/0312896215617225

Abstract: Retirement income stream products are difficult for consumers to choose because of their high perceived risk, irreversibility, high expenditure, little opportunity for social learning and distant consequences. Prior literature is unclear about consumers’ use of heuristics in decumulation decisions or whether sociodemographics can help identify vulnerable consumers. In the context of Australia’s retirement income arrangements, we examine choices of life annuities and phased withdrawal products, and identify use of default options and the ersification (1/ n or 50:50) heuristic using a novel finite mixture modelling approach. The innovative feature of this approach is that it captures the very specific allocation pattern associated with choices based on deterministic decision rules, namely pronounced spikes at the locations of the particular heuristics with little mass in their surroundings. We show that more than 30% of decumulation choices rely on these two heuristics, and that cognitive and product knowledge limitations contribute to using such heuristics. The results have implications for public policy on decumulation of retirement savings, regulation of product disclosures and providers of annuity and phased withdrawal products. More generally, our model has the potential to provide better understanding of the use of heuristics in consumer decisions.

Learning and Confirmation Bias: Measuring the Impact of First Impressions and Ambiguous Signals

Publisher: Elsevier BV

Date: 2018

DOI: 10.2139/SSRN.3228082

Individual capability and effort in retirement benefit choice

Publisher: Wiley

Date: 24-08-2016

DOI: 10.1111/JORI.12162

Corrigendum to “Multidimensional endogenous gridpoint method: Solving triangular dynamic stochastic optimization problems without root-finding operations” [Econom. Lett. 135 (2015) 72–76]

Publisher: Elsevier BV

Date: 2017

DOI: 10.1016/J.ECONLET.2016.11.002

Recursive Lexicographical Search: Finding All Markov Perfect Equilibria of Finite State Directional Dynamic Games

Publisher: Oxford University Press (OUP)

Date: 29-10-2015

DOI: 10.1093/RESTUD/RDV046

Editorial

Publisher: Oxford University Press (OUP)

Date: 09-2020

DOI: 10.1093/ECTJ/UTAA024

Feeling comfortable with a mortgage: The impact of framing, financial literacy and advice

Publisher: Cambridge University Press (CUP)

Date: 04-2023

DOI: 10.1017/FLW.2023.3

Abstract: The family home is the most important asset on household balance sheets, aside from human capital. Choosing a suitable mortgage is therefore critical to financial well-being but households often make costly mistakes. We collect data in an online survey to test borrowers’ comfort with, and understanding of, mortgage debt. We analyze the impact of financial literacy, mortgage broker advice and whether the loan is framed as a lump sum debt or an equivalent stream of repayments. We conjecture that participants’ comfort with loans and their ability to match lump sum debt to equivalent repayment streams will help them to choose a suitable mortgage. Results show that participants with high financial literacy are less comfortable with mortgage debt in general and also less sensitive to framing than those with low financial literacy. Literate participants are better able to match repayment streams with the equivalent lump sums. Endogeneity-controlled regression analysis shows that consulting brokers leads to higher comfort with debt and lower sensitivity to framing. Survey responses also indicate more uncertainty about future house prices among borrowers who intend to consult brokers than among those who do not.

First impressions matter: an experimental investigation of online financial advice

Publisher: Institute for Operations Research and the Management Sciences (INFORMS)

Date: 2017

DOI: 10.1287/MNSC.2016.2590

Abstract: We explore how in iduals assess the quality of financial advice they receive and how they form judgments about advisers. Using an incentivized discrete choice experiment, we show that first impressions matter: consumers more often follow advisers who dispense good advice before bad. We demonstrate how clients’ opinions of adviser quality can be manipulated by using an easily replicated confirmation strategy that depends on the quality of the advice and the difficulty and order of the advice topics. Our results also reveal how clients benefit from their own past experience and how they use professional credentials to guide their choices. Data, as supplemental material, are available at 0.1287/mnsc.2016.2590 . This paper was accepted by John List, behavioral economics.

Overview: Implementation of structural dynamic models: Methodology and applications

Publisher: Elsevier BV

Date: 08-2021

DOI: 10.1016/J.JECONOM.2021.03.009

Effects of taxes and safety net pensions on life-cycle labor supply, savings and human capital: The case of Australia

Publisher: Elsevier BV

Date: 08-2021

DOI: 10.1016/J.JECONOM.2020.01.023

The endogenous grid method for discrete-continuous dynamic choice models with (or without) taste shocks

Publisher: The Econometric Society

Date: 07-2017

DOI: 10.3982/QE643

Australian National University

Location: Australia

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University Of Oslo

Location: Norway

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ARC Future Fellowships - Grant ID: FT180100632

Start Date: 2019

End Date: 12-2023

Amount: $857,585.00

Funder: Australian Research Council

Discovery Projects - Grant ID: DP190101056

Start Date: 02-2019

End Date: 12-2024

Amount: $660,000.00

Funder: Australian Research Council