Liquidity constraints and optimal annuitization
In this paper, we view an individual's annuitization decision as an American style call option whose underlying asset is financial wealth, which controls the distance to annuitization. We then derive a certain threshold of wealth over which the individual is optimal to annuitize all of her weal...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2022-04-01
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| Series: | Seonmul yeongu |
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| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/JDQS-12-2021-0033/full/pdf |