An Experimental Study of the Effect of Market Performance on Annuitization and Equity Allocations

Autor:	Lisa R. Anderson, Lisa R. Szykman, Julie R. Agnew
Rok vydání:	2015
Předmět:	Actuarial science Annuity (American) Portfolio allocation Economics Equity (finance) Experimental and Cognitive Psychology Experimental economics Experimental methods Laboratory experiment Behavioral economics Finance
Zdroj:	Journal of Behavioral Finance. 16:120-129
ISSN:	1542-7579 1542-7560
DOI:	10.1080/15427560.2015.1034857
Popis:	Although researchers have studied the annuity puzzle for years, it has only recently been analyzed from a behavioral finance standpoint. This paper adds to this new stream of literature by using experimental methods to investigate how market performance affects the decision to annuitize. Using a large-scale, controlled laboratory experiment, this paper finds evidence that excessive extrapolation may be influencing this decision. In addition, we find that past market performance influences subsequent portfolio allocation decisions. This paper serves as a useful complement to recent studies using administrative data. Our experimental approach allows us to more cleanly test the role of past market performance by carefully controlling for many factors that may confound the analysis of administrative data.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::e31abee6214089e1099fb6e04a899530 https://doi.org/10.1080/15427560.2015.1034857 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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