Optimal annuitization, uncertain survival probabilities, and maxmin preferences

We consider a life-cycle model with bequest motives, and assume that the individual does not know his/her survival probability and has maxmin utility preferences; we show that it is optimal not to annuitize but to purchase pure life insurance policies instead.

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Year of publication:	2012-05
Authors:	D'Albis, Hippolyte ; Thibault, Emmanuel
Institutions:	HAL
Subject:	Demand for annuities \| Uncertain survival probabilities \| Uncertainty aversion \| Maxmin

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Extent:	application/pdf
Series:	Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers).
Type of publication:	Book / Working Paper
Language:	English
Notes:	View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00670320 Published, Economics Letters, 2012, 115, 2, 296-299
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009647512