Article

Optimal annuitization, uncertain survival probabilities, and maxmin preferences

Hippolyte D'Albis et Emmanuel Thibault

Résumé

We consider a life-cycle model with bequest motives, and assume that the individual does not know his/her survival probability and has maxmin utility preferences;weshow that it is optimal not to annuitize but to purchase pure life insurance policies instead.

Mots-clés

Demand for annuities; Uncertain survival probabilities; Uncertainty aversion; Maxmin;

Codes JEL

  • D11: Consumer Economics: Theory
  • D81: Criteria for Decision-Making under Risk and Uncertainty
  • G11: Portfolio Choice • Investment Decisions
  • G22: Insurance • Insurance Companies • Actuarial Studies

Référence

Hippolyte D'Albis et Emmanuel Thibault, « Optimal annuitization, uncertain survival probabilities, and maxmin preferences », Economics Letters, Elsevier, vol. 115, n° 2, mai 2012, p. 296–299.

Publié dans

Economics Letters, Elsevier, vol. 115, n° 2, mai 2012, p. 296–299