Annuity and insurance choice under habit formation

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 assump...

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Bibliographic Details
Main Authors: Boyle, Phelim, Tan, Ken Seng, Wei, Pengyu, Zhuang, Sheng Chao
Other Authors: Nanyang Business School
Format: Article
Language:English
Published: 2022
Subjects:
Online Access:https://hdl.handle.net/10356/161653
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Institution: Nanyang Technological University
Language: English