Why do we postpone annuity purchases?
Article dans une revue: This paper seeks to explain why annuity purchases are postponed to a later age. We consider an overlapping generations model with uncertain lifetime and two types of annuities. It is shown that, if the economy is dynamically inefficient, individuals demand annuities without delay. However, if it is efficient, annuity purchases are postponed. We also show that these results are robust to several extensions.
Auteur(s)
Hippolyte d’Albis, Andrei Kalk
Revue
- Journal of Mathematical Economics
Date de publication
- 2021
Mots-clés JEL
Mots-clés
- Annuity purchases
- Overlapping generations
- Postvponement
- Annuity pricing
URL de la notice HAL
Version
- 1
Volume
- 95