Why do we postpone annuity purchases?
- Author(s)
- Hippolyte d’Albis, Andrei Kalk
- Abstract
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.
- Organisation(s)
- Department of Economics
- External organisation(s)
- École d’Économie de Paris, Centre National De La Recherche Scientifique (CNRS)
- Journal
- Journal of Mathematical Economics
- Volume
- 95
- ISSN
- 0304-4068
- DOI
- https://doi.org/10.1016/j.jmateco.2021.102500
- Publication date
- 08-2021
- Peer reviewed
- Yes
- Austrian Fields of Science 2012
- 502047 Economic theory
- Keywords
- ASJC Scopus subject areas
- Applied Mathematics, Economics and Econometrics
- Portal url
- https://ucrisportal.univie.ac.at/en/publications/d28dbe56-c859-4169-945b-bdf2464b1fcc