Corpus ID: 46658091

The Downside of Defaults

  title={The Downside of Defaults},
  author={J. Brown and A. M. Farrell and Scott J. Weisbenner},
  • J. Brown, A. M. Farrell, Scott J. Weisbenner
  • Published 2011
  • Economics
  • The use of default options to influence retirement saving behavior is often portrayed as a Pareto improvement because it guides behavior without constraining individual choice. When defaults are irreversible, however, the welfare implications of defaults depend critically on why individuals default. We examine the active versus passive behavior of participants in a large public retirement plan when faced with a choice between defined benefit and defined contribution plans. We document… CONTINUE READING
    27 Citations

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