Choosing annuities for a home reversion: the case of the French viager market
Jean-Baptiste Coulomb,
Fabrice Larceneux,
Arnaud Simon
Abstract:PurposeThe authors analyzed annuitization preferences when retired people extract cash from their homes. Based on 2,608 viager (home reversion) transactions, the authors study the relations between annuitization, negotiation, cash extraction, age, gender and marital status.Design/methodology/approachA database comprising 2,608 transactions is used. The three-stage least squares (3SLS) and moderation models are implemented, with a focus on potential adverse selection issues.FindingsThe authors found that diffic… Show more
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