Publications by Author: Brown, Jeffrey R.

Mullainathan, Sendhil, Jeffrey R Brown, Jeffrey R Kling, and Marian V Wrobel. 2008. “Why Don't People Insure Late Life Consumption? A Framing Explanation of the Under-Annuitization Puzzle”. Abstract
According to standard economic models, a risk-averse consumer who faces uncertainty about length-of-life should place a high value on life annuities that provide guaranteed income for life. Yet numerous studies show that few consumers voluntarily annuitize their retirement savings. As public and private pension systems around the world continue the ongoing shift from traditional defined benefit plans, which typically pay benefits for life, to defined contribution structures which rarely require annuitization, retirees find themselves increasingly exposed to longevity risk—the risk of being unable to sustain their consumption should they live longer than average.
Presented at the American Economic Association, January 5, 2008.
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