Journal of Economic Perspectives, Fall 2011
36 Pages Posted: 14 Oct 2011
Date Written: October 13, 2011
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