Economics at your fingertips  

The Role of Annuitized Wealth in Post-retirement Behavior

John Laitner, Dan Silverman and Dmitriy Stolyarov

American Economic Journal: Macroeconomics, 2018, vol. 10, issue 3, 71-117

Abstract: This paper develops a tractable model of post-retirement behavior with health status uncertainty and state-verification difficulties. The model distinguishes between annuitized and non-annuitized wealth and features means-tested Medicaid assistance with nursing home care. We show how to solve the potentially complex dynamic problem analytically, making it possible to characterize optimal behavior with phase diagrams. The analysis provides an integrated treatment of portfolio composition and consumption/wealth accumulation choices. We show the model can explain both the "retirement-saving puzzle" and the "annuity puzzle."

JEL-codes: D14 D15 G11 I18 I38 J14 J26 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/mac.20160343
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf) ... oYU1nBYVjZNgTXF8tmrT (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

Access Statistics for this article

American Economic Journal: Macroeconomics is currently edited by Simon Gilchrist

More articles in American Economic Journal: Macroeconomics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

Page updated 2019-10-11
Handle: RePEc:aea:aejmac:v:10:y:2018:i:3:p:71-117