Health Shocks and Annuity Choices
成果类型：
Article; Early Access
署名作者：
Hagen, Johannes; Hodor, Michal; Hurwitz, Abigail
署名单位：
Jonkoping University; Tel Aviv University; Hebrew University of Jerusalem
刊物名称：
MANAGEMENT SCIENCE
ISSN/ISSBN：
0025-1909
DOI：
10.1287/mnsc.2025.00682
发表日期：
2026
关键词：
摘要：
This study examines how a first-time malignant cancer diagnosis, acting as an informational shock to perceived longevity, affects the demand for life annuities. Using a quasi-experimental design and exploiting Swedish administrative data, we show that receiving a cancer diagnosis close to retirement reduces annuitization rates by 5.5%. The diagnosis lowers the money's worth ratio of a life annuity by 33%, representing a substantial financial loss. Combined with the modest behavioral response, this yields a low demand elasticity of 0.17 with respect to the perceived annuity value. Evidence from a complementary laboratory experiment indicates that this limited adjustment is driven by the influence of a default option that reduces responsiveness to private health information and may disadvantage individuals in poor health.