Nudges influence behavior by changing the environment in which decisions are made,
without restricting the menu of options and without altering financial incentives. This paper …

Intertemporal tradeoffs play a key role in many personal decisions and policy questions. We
describe models of intertemporal choice, identify empirical regularities in choice, and pose …

With aging populations, the role of private insurance in financing late-in-life risks is likely to
grow. Yet, demand for long-term care insurance (LTCI) and life annuities (hereafter …

This chapter provides an overview of household finance. The first part summarizes key facts
regarding household financial behavior, emphasizing empirical regularities that are …

This paper documents consumers' difficulty valuing life annuities. Using a purpose-built
experiment in the American Life Panel, we show that the prices at which people are willing …

This paper examines two behavioral factors that diminish people's ability to value a lifetime
income stream or annuity, drawing on a randomized experiment with about 4,000 adults in a …

We propose a model of narrow framing in insurance and test it using data from a new
module we designed and fielded in the Health and Retirement Study. We show that …

Measuring the sensitivity of housing demand to mortgage rates and available leverage is
challenging because there is generally no exogenous variation in these variables. This …

The conventional wisdom since Yaari (1965) is that households without a bequest motive
should fully annuitize their investments. Numerous frictions do not break this sharp result …

Income-driven student loan repayment (IDR) plans provide protection against unaffordable
loan payments and default by linking loan payments to borrower's earnings. Despite the …