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Jie Ding

  • Title: Mr
  • Position: PhD Student - Department of Economics

Contact Details

Student information

  • Load: PhD Student Full Time
  • Principal supervisor: Professor Geoffrey Kingston
  • Associate supervisor: Professor Stefan Trueck
  • Date of submission: 03/03/2014
  • Thesis title: Retirement Financial Planning
  • Purpose: Develop and calibrate a utility model with realistic assumptions to model the financial behaviours of Australian retirees
  • Originality: A semi-analytical solution allows the utility parameters to be effectively calibrated to ABS data. While previous researches require assumptions on many model parameters.
  • Key Literature/theoretical perspective:
    • Suitable form of utility function and dynamic programming methods.
    • Empirical studies in Australian and overseas on retiree’s preferences on consumption, housing and bequest.
  • Design/methodology/approach: With data analysis and literature review, develop an utility model that is theoretically sound and mathematically feasible -> calibrate the model to ABS data -> review the model -> repeat
  • Findings: The calibrated model reasonably explains the financial behaviour of the households surveyed in the ABS data.
  • Research limitations/implications: This research attempts to model the financial behaviour of Australians in average. However the assumption that a single utility function with a particular set of parameters is applicable for everyone, suffers from the lack of variability.
  • Practical and social implications:
    • Knowing the financial preference of Australian retirees helps with financial planning in practice.
    • We can model people’s reaction to a certain change in public policy, if we assume the change in modelled behaviour will be similar to the change in their actual behaviour.
  • Keywords: Utility, financial planning, dynamic programming, age pension