Date of this Version
Journal of Labor Economics
In the absence of perfect annuity markets, individual consumers generally undertake precautionary saving to provide resources for their future consumption in the event that they live longer than expected. Kotlikoff, Shoven, and Spivak (in this issue) (hereafter KSS) have provided us with a well-conceived and well-executed study of the effects of various annuity arrangements on individual and aggregate saving in the presence of lifetime uncertainty. Each of these authors has had a long-standing interest in this area, and their current paper reflects their accumulated expertise. Their results indicate that a potentially sizable fraction of U.S. household wealth represents precautionary saving resulting from the absence of perfect annuity market.
© 1986 by University of Chicago Press
Abel, A. B. (1986). Comment on Kotlikoff, Shoven, and Spivak. Journal of Labor Economics, 4 (3(2)), S208-S215. http://dx.doi.org/10.1086/298128
Date Posted: 27 November 2017
This document has been peer reviewed.