The Impact of Individual Investment Behavior for Retirement Welfare: Evidence from the United States and Germany

Tables

Table 1: Parameter Calibration for the Benchmark Model

Parameter		Value United ________States________	Value Germany
relative risk aversion	γ	2 (1, 3)	2 (1, 3)
subjective discount factor	δ	0.97 (0.95, 0.99)	0.97 (0.95, 0.99)
		United States Life Tables 2003	Life Table for
survival probability	pt	United States Life Tables 2003	Germany 2002/2004
marginal tax rate Log-normal stock return	Rt	0%	0%
expected return	E(Rt)	1.1151	1.1264
standard deviation of return	Std(Rt)	0.1996	0.2792
risk-free return	Rf	1.0361	1.0472
Inflation	π	0.0310	0.0279
Log-normal labor income	Lt
expected growth rates during		life-cycle-income	life-cycle-income
work life		profile	profile
expected real growth rates during retirement		0	0
replacement factor		35%	40%
standard deviation during work life		0.19 ∙ E(Lt)	0.05 ∙ E(L_t)
standard deviation during retirement_____________________		0	0

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