Finance Papers

Document Type

Journal Article

Date of this Version

7-1986

Publication Source

Journal of Labor Economics

Volume

4

Issue

3(2)

Start Page

S208

Last Page

S215

DOI

10.1086/298128

Abstract

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.

Copyright/Permission Statement

© 1986 by University of Chicago Press

Comments

At the time of publication, author Andrew B. Abel was affiliated with the Harvard University & National Bureau of Economic Research . Currently (September 2017), he is a faculty member in the Finance Department of the Wharton School at the University of Pennsylvania.

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Date Posted: 27 November 2017

This document has been peer reviewed.