Optimal Smooth Consumption and Annuity Design

We propose an optimization criterion that yields extraordinary consumption smoothing compared to the well known results of the life-cycle model. Under this criterion we solve the related consumption and investment optimization problem faced by individuals with preferences for intertemporal stability in consumption. We find that the consumption and investment patterns demanded under the optimization criterion is in general offered as annuity benefits from products in the class of ‘Formula Based Smoothed Investment-Linked Annuities'

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Year of publication:	2014
Authors:	Bruhn, Kenneth
Other Persons:	Steffensen, Mogens (contributor)
Publisher:	[2014]: [S.l.] : SSRN
Subject:	Theorie \| Theory \| Privater Konsum \| Private consumption
Description of contents:	Abstract [papers.ssrn.com] ; Abstract [doi.org]

Extent:	1 Online-Ressource
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: Journal of Banking and Finance, Vol. 37, No. 8, 2013 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 9, 2012 erstellt Volltext nicht verfügbar
Other identifiers:	10.2139/ssrn.2187039 [DOI]
Classification:	D01 - Microeconomic Behavior: Underlying Principles ; D14 - Personal Finance ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving ; g02 ; G11 - Portfolio Choice ; G22 - Insurance; Insurance Companies
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013064932