The impact of longevity risk and risk attitude on investment and consumption decisions of households

• Main Authors: Po-Ming Chen, 陳柏銘
• Other Authors: 田峻吉
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/48833878566484260957

碩士 === 淡江大學 === 保險學系保險經營碩士班 === 98 === This research designs a simulation of household’s lifetime consumption and asset allocation, combine the income, net assets and life expectancy with the decision-making of experiment from questionnaire by experimental economists. Through two experiments to research different risk attitude of the households in consumption and investment decisions weather affect by the longevity risk. The empirical results show that (1) education level and net assets as inversely related to the absolute risk aversion; but net assets and income as positive related to the relative risk aversion. (2)In consumption decision-making, whether or not consideration longevity risk, the household tend to more risk averse have less consumption ratio; and in the investment decisions, consider the longevity risk in retirement will be held higher proportion of risk-free assets and lower proportion of risky assets. (3) If the household organization are female, highly education level, more children, low life expectancy and tend to risk aversion, when above face the longevity risk, they will increase the risk-free assets and reduce the risk of assets to decrease the impact of longevity risk.