The literature on household asset accumulation draws a sharp distinction between "short-run" precautionary motives to buffer consumption from annual income shocks, and "long-run" life cycle considerations under income certainty. However, estimates of shock persistence imply considerable career...

We state the following hypotheses: 1) Happiness depends on social rank – a term from primatology meaning the place in group hierarchy which determines mating chances, number of offspring and food share; this dependence explains the correlation between relative income and subjective well-being...

The main objective of this paper is to go deeper into the “annuity puzzle” by introducing the altruistic and strategic bequest motive and determining whether this really is a relevant factor affecting the theoretical decision to purchase life annuities. With this end in view we develop an...