Lopes, Paula 
ORCID: 0009-0009-7391-7788 and Michaelides, Alexander
(2005)
Rare events and annuity market participation.
Financial Markets Group Discussion Papers (553).
Financial Markets Group, The London School of Economics and Political Science, London, UK.
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Abstract
We investigate whether a rare event (like the default of the annuity provider) can explain the annuity market participation puzzle. High risk aversion is needed to change behavior in the presence of such a disastrous shock but higher risk aversion also makes annuities more valuable. Therefore, these rare events are unlikely candidates to explain the low take-up of voluntary annuities.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://fmg.ac.uk |
| Additional Information: | © 2005 The Authors |
| Divisions: | Financial Markets Group |
| Subjects: | H Social Sciences > HF Commerce H Social Sciences > HG Finance H Social Sciences > HB Economic Theory |
| JEL classification: | H - Public Economics > H0 - General > H00 - General E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Employment, and Investment > E21 - Macroeconomics: Consumption; Saving; Aggregate Physical and Financial Consumer Wealth |
| Date Deposited: | 30 Jul 2009 14:03 |
| Last Modified: | 11 Sep 2025 04:02 |
| URI: | http://eprints.lse.ac.uk/id/eprint/24672 |
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