Value of life annuities witha bequest motive in Korea
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초록
This paper evaluates value of life annuity with consideration of the bequest motive. The analysis is applied to various cohorts among Koreans, who are believed to possess a relatively strong bequest motive. Specifically, we examine how the valuation of annuities changes across various socioeconomic groups by gender, marital status, and education as well as the level of pre-annuitized wealth in the presence of a bequest motive. In this study, the educational level is used as a proxy for mortality. The results suggest that the bequest motive reduces the value of annuities in terms of utility and the reduction is substantial in high mortality-risk groups such as poorly educated men. Also, the results indicate a strong relationship between the values of annuities and demographic characteristics.
Abstract
This paper evaluates value of life annuity with consideration of the bequest motive. The analysis is applied to various cohorts among Koreans, who are believed to possess a relatively strong bequest motive. Specifically, we examine how the valuation of annuities changes across various socioeconomic groups by gender, marital status, and education as well as the level of pre-annuitized wealth in the presence of a bequest motive. In this study, the educational level is used as a proxy for mortality. The results suggest that the bequest motive reduces the value of annuities in terms of utility and the reduction is substantial in high mortality-risk groups such as poorly educated men. Also, the results indicate a strong relationship between the values of annuities and demographic characteristics.
참고문헌 (42)
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