Publications by authors named "Andrew Metrick"
Article Synopsis
- Individual investors tend to overreact to their personal savings experiences, particularly increasing their 401(k) savings rate after experiencing high or stable returns.
- Those with more rewarding outcomes in their savings, such as high average returns, are likely to save more in their 401(k) compared to those with less positive experiences.
- The study's findings are not influenced by external economic factors or individual learning about investment skills, raising implications for understanding the equity premium puzzle and potential strategies to enhance household financial health.
Defaults often have a large influence on consumer decisions. We identify an overlooked but practical alternative to defaults: requiring individuals to make an explicit choice for themselves. We study such "active decisions" in the context of 401(k) saving.
View Article and Find Full Text PDF