Showing 1 - 10 of 10,431
Much of the industrialized world is undergoing a significant demographic shift, placing strain on public pension systems. Policymakers are responding with pension system reforms that put more weight on privately managed retirement funds. One concern with these changes is the effect on individual...
Persistent link: https://www.econbiz.de/10010263734
This paper investigates how loss-aversion affects individuals' decisions on savings and insurance purchase. Specifically, this paper empirically tests if prospect theory's loss aversion decreases insurance demand and increases savings demand. Prospect theory predicts that boundedly rational...
Persistent link: https://www.econbiz.de/10012962197
. While longevity risk sharing in pooled annuities has received recent attention, incorporating investment risk beyond fixed …
Persistent link: https://www.econbiz.de/10013363078
Whole life insurance plays an important role in household saving. However, empirical evidence on its determinants is scarce. This paper studies two natural experiments to identify the effects of tax incentives and bequest motives on life-insurance demand. An unanticipated tax reform in 2000...
Persistent link: https://www.econbiz.de/10010270489
Whole life insurance plays an important role in household saving. However, empirical evidence on its determinants is scarce. This paper studies two natural experiments to identify the effects of tax incentives and bequest motives on life-insurance demand. An unanticipated tax reform in 2000...
Persistent link: https://www.econbiz.de/10003966524
We examine the duration-driven trades of duration-sensitive strategic investors, i.e., pensions and life insurers. We use longevity shocks as an identification strategy. Longevity shocks affect these investors' liability durations and induce them to adjust their asset durations. When the...
Persistent link: https://www.econbiz.de/10012842658
. While longevity risk sharing in pooled annuities has received recent attention, incorporating investment risk beyond fixed …
Persistent link: https://www.econbiz.de/10012862695
Households face earnings risk which is non-normal and varies by age and over the income distribution. We show that, in the context of a structurally estimated life-cycle portfolio choice model, allowing for these rich features of earnings dynamics helps to better understand the limited...
Persistent link: https://www.econbiz.de/10014236105
Standard portfolio choice models predict that investors consider the tax implications of trading. However, individuals are disposed toward realizing gains and holding losing investments, behaviors that worsen their performance. We show, in an experimental market, that increasing tax salience...
Persistent link: https://www.econbiz.de/10013247044
We analytically show that a common across rich/poor individuals Stone-Geary utility function with subsistence consumption in the context of a simple two-asset portfolio-choice model is capable of qualitatively and quantitatively explaining: (i) the higher saving rates of the rich, (ii) the...
Persistent link: https://www.econbiz.de/10008856389