Annuity and insurance choice under habit formation

被引：8

作者：

Boyle, Phelim ^{[1
]}

Tan, Ken Seng ^{[2
]}

Wei, Pengyu ^{[3
]}

Zhuang, Sheng Chao ^{[4
]}

机构：

[1] Wilfrid Laurier Univ, Laurier Sch Business & Econ, Waterloo, ON, Canada

[2] Nanyang Technol Univ, Finance Res Ctr, Nanyang Business Sch, Div Banking & Finance & Insurance Risk, Singapore, Singapore

[3] Nanyang Technol Univ, Nanyang Business Sch, Div Banking & Finance, Singapore, Singapore

[4] Univ Nebraska Lincoln, Dept Finance, 1400 R St, Lincoln, NE USA

来源：

INSURANCE MATHEMATICS & ECONOMICS | 2022年 / 105卷

关键词：

Habit formation; Life-cycle model; Life insurance; Annuity; Martingale method; LIFE-INSURANCE; PORTFOLIO CHOICE; OPTIMAL CONSUMPTION; ASSET PRICES; DEMAND; RISK; PREFERENCES; INVESTMENT; SELECTION; PURCHASE;

D O I：

10.1016/j.insmatheco.2022.04.003

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

This paper examines the impact of habit formation on the demand for life-contingent contracts in a life-cycle model. We derive an analytical solution for the optimal consumption, portfolio choice, and life insurance/annuity purchases. We illustrate the mechanism by which the consumption habit assumption can alter the bequest motive and therefore drive the demand for life-contingent products. Based on our assumed insurance/annuity markets, we show that habit formation alone leads to low demand on either life insurance or annuity but not both. However, habit formation together with social security results in low demand in both life insurance and annuity. (c) 2022 Elsevier B.V. All rights reserved.

引用

页码：211 / 237

页数：27

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