Replication data for: Incidental Bequests and the Choice to Self-Insure Late-Life Risks
- Lockwood, Lee M.
AbstractDespite facing significant uncertainty about their lifespans and health care costs, most retirees do not buy annuities or long-term care insurance. In this paper, I find that retirees' saving and insurance choices are highly inconsistent with standard life cycle models in which people care only about their own consumption but match well models in which bequests are luxury goods. Bequest motives tend to reduce the value of insurance by reducing the opportunity cost of precautionary saving. The results suggest that bequest motives significantly increase saving and significantly decrease purchases of long-term care insurance and annuities.
Is supplement to
DOI: 10.1257/aer.20141651 (Text)
Lockwood, Lee M. “Incidental Bequests and the Choice to Self-Insure Late-Life Risks.” American Economic Review 108, no. 9 (September 2018): 2513–50. https://doi.org/10.1257/aer.20141651.
- ID: 10.1257/aer.20141651 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-06