Most economic decisions have both immediate and future consequences. We study how households anticipate the future via consumption, saving, and investment decisions. Understanding anticipation is necessary both from a theoretical perspective (identifying the correct model of behavior) and from a practical perspective (improving household decisions). In our research at Aalto University, we use Finnish population microdata and quantitative research methods (for instance, quasi-experiments and "big-data" regression analysis) to study anticipatory behavior in three high-stakes settings: i) the anticipation of predictable inheritances; ii) underuse of negative-interest student debt due to lack of anticipation; iii) anticipation of predictable increases in housing wealth. The project promotes scientific renewal by both improving our theoretical understanding of intertemporal choice, and by helping design interventions to improve household financial decisions.

2023

2028