The Role of Annuitized Wealth in Post-retirement Behavior

• 成果类型: Article
• 署名作者: Laitner, John; Silverman, Dan; Stolyarov, Dmitriy
• 署名单位: University of Michigan System; University of Michigan; Arizona State University; Arizona State University-Tempe
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20160343
• 发表日期: 2018
• 页码: 71-117
• 关键词: long-term-care; life-cycle; liquidity constraints; Medical expenses; social-security; bequest motives; UNITED-STATES; insurance; consumption; altruism

摘要

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.