Working Paper Series Why Don ' T People Insure Late Life Consumption : a Framing Explanation of the Under-annuitization Puzzle

@inproceedings{Brown2011WorkingPS,
  title={Working Paper Series Why Don ' T People Insure Late Life Consumption : a Framing Explanation of the Under-annuitization Puzzle},
  author={Jeffrey R. Brown and Jeffrey R. Kling},
  year={2011}
}
Rational models of risk-averse consumers have difficulty explaining limited annuity demand. We posit that consumers evaluate annuity products using a narrow "investment frame" that focuses on risk and return, rather than a "consumption frame" that considers the consequences for lifelong consumption. Under an investment frame, annuities are quite… CONTINUE READING