Is there any Python or Julia script computationally explaining the Stock and Wise (1990) option value retirement model?
Individuals have a probability of surviving from period t to period s (π_{s,t}), but die with certainty by age T. Discounted lifetime utility is:
V_{t}(r)=\sum_{s=t}^{r-1} \beta^{s-t} \pi_{s, t} U_{w}\left(Y_{s}^{w}\right)+\sum_{s=r}^{T} \beta^{s-t} \pi_{s, t} U_{r}\left(Y_{s}^{R}\right)
(extracted from Blundell, R., French, E., & Tetlow, G. (2016). Retirement Incentives and Labor Supply. In J. (John R. ) Piggott & A. D. Woodland (Eds.), Handbook of the economics of population aging (pp. 458–566). Elsevier)