Evidence on Individual Preferences for Longevity Risk
نویسندگان
چکیده
Evidence on Individual Preferences for Longevity Risk The standard model of intertemporal choice assumes risk neutrality toward the length of life: due to additivity, agents are not sensitive to a mean preserving spread in the length of life. Using a survey fielded in the RAND American Life Panel (ALP), this paper provides empirical evidence on possible deviation from risk neutrality with respect to longevity in the U.S. population. The questions we ask allow to find the distribution as well as to quantify the degree of risk aversion with respect to the length of life in the population. We find evidence that roughly 75% of respondents were not neutral with respect to longevity risk. Higher income households are more likely to be risk averse. We do not find evidence that the degree of risk aversion varies with age or education. JEL Classification: D12, D91, I10, J26
منابع مشابه
What is a QALY Worth? Admissible Utility Functions for Health, Longevity, and Wealth
Health risks are commonly quantified using either of two alternative measures, willingness to pay (WTP) and quality-adjusted life years (QALYs). The relationship between these measures is of interest for comparing benefit-cost analysis (which uses WTP) with cost-effectiveness analysis (which uses QALYs), identifying a threshold for determining which health interventions are cost-effective, and ...
متن کاملThe effect of increasing distance of external focus and preference on performance accuracy in dart throwing
The present study examined the effectiveness of distal versus proximal external foci of attentions a function of performers’ preferences for a certain focus. dart throwing task were used, and participants (N=20) were instructed to direct their attention either to the target (distal focus) or the flight of the dart (proximal focus). Participants were asked to select their preferred focus aft...
متن کاملComparison of p300 in risk-seeker and risk-averse people during simple gambling task
Risk preference, the degree of tendency to take risk, has a fundamental role at individual and social health and is divided to risk seeker and risk averse. Therefore, the study of neural corelates of risk preferences is essential at the field of psychology and psychiatry. The current study aimed to examine and compare an ERP component named P300 between subjects with different risk preferences....
متن کاملSources of Advantageous Selection: Evidence from the Medigap Insurance Market
We provide evidence of advantageous selection in the Medigap insurance market and analyze its sources. Conditional on controls for Medigap prices, those with Medigap spend, on average, $4,000 less on medical care than those without. But if we condition on health, those with Medigap spend $2,000 more. The sources of this advantageous selection include income, education, longevity expectations, a...
متن کاملArrow theorems in the fuzzy setting
Throughout this paper, our main idea is to analyze the Arrovian approach in a fuzzy context, paying attention to different extensions of the classical Arrow's model arising in mathematical Social Choice to aggregate preferences that the agents define on a set of alternatives. There is a wide set of extensions. Some of them give rise to an impossibility theorem as in the Arrovian classical mod...
متن کامل