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/hersurvival 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
Authors:	Thibault, Emmanuel ; D'Albis, Hippolyte
Institutions:	Université Paris-Dauphine (Paris IX)
Subject:	Demand for annuities \| Uncertain survival probabilities \| Uncertainty aversion \| Maxmin

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Series:	Economics Papers from University Paris Dauphine.
Type of publication:	Book / Working Paper
Notes:	Published in Economics Letters, 2012, no. 115
Classification:	G22 - Insurance; Insurance Companies ; G11 - Portfolio Choice ; D81 - Criteria for Decision-Making under Risk and Uncertainty ; D11 - Consumer Economics: Theory
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010706540