Download This PaperAnnuity Puzzles
Journal of Economic Perspectives, Fall 2011
36 Pages Posted: 14 Oct 2011
Date Written: October 13, 2011
Abstract
We analyze the long-standing “annuity puzzle” through the lens of behavioral economics. We provide novel evidence that lessens the extent of the puzzle and shed some additional light on the real drivers of the decision to annuitize. Last, we discuss the policy implications of our findings.
Keywords: Behavioral Finance, Household FInance, Annuity Puzzle, Inertia, Framing Effects
JEL Classification: D03, D14, G11, G22, H55
Suggested Citation: Suggested Citation
Alessandro Previtero (Contact Author)
Indiana University - Kelley School of Business - Department of Finance ( email )
1309 E. 10th St.
Bloomington, IN 47405
United States
+1 (512) 581-5420 (Phone)
HOME PAGE: http://aleprevitero.com
Richard H. Thaler
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-5208 (Phone)
773-702-0458 (Fax)
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