This paper provide a methodology to find the optimal annuitization strategies that minimize initial wealth required at retirement allowing a given lifetime ruin probability. Previous results are extended, first to the case when annuity prices are not of fair value, then to the case when the required consumptions trajectory is not constant but follows a U shape. Numerical examples show the benefit of annuitization for retirees with different risk preferences in both cases. Given current annuity prices in Australia, there is very little incentive for retirees to annuitize; by incorporating life annuities into a financial strategy, a retiree is only able to reduce the wealth required at retirement by about 4%. There is however huge potential for improvement, as when annuity prices provide fair value, the same retiree can reduce her required saving by about 30%. This is a significant benefit and it is subject of future research for ways to effectively share it between the retiree, the insurer and the government.
{"title":"Annuitization with Phased Consumption Requirements: Who, When and How Much","authors":"Jie Ding","doi":"10.2139/ssrn.2014453","DOIUrl":"https://doi.org/10.2139/ssrn.2014453","url":null,"abstract":"This paper provide a methodology to find the optimal annuitization strategies that minimize initial wealth required at retirement allowing a given lifetime ruin probability. Previous results are extended, first to the case when annuity prices are not of fair value, then to the case when the required consumptions trajectory is not constant but follows a U shape. Numerical examples show the benefit of annuitization for retirees with different risk preferences in both cases. Given current annuity prices in Australia, there is very little incentive for retirees to annuitize; by incorporating life annuities into a financial strategy, a retiree is only able to reduce the wealth required at retirement by about 4%. There is however huge potential for improvement, as when annuity prices provide fair value, the same retiree can reduce her required saving by about 30%. This is a significant benefit and it is subject of future research for ways to effectively share it between the retiree, the insurer and the government.","PeriodicalId":430759,"journal":{"name":"INTL: Other Global Business Issues (Topic)","volume":"21 4","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-12-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132737703","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The International Business Environment (IBE) is argued to be the essential context for international business (IB) studies and the distinguishing factor from other management studies, and from studies of large scale enterprises. In this paper we argue for a greater environmental focus and illustrate how and how much the IBE has been included in published IB research. While extant research has often taken a uni-dimensional view, which has been mostly anchored in the cultural environment, we suggest that: (a) there is a need to developed more uni-and multi-dimensional environmental constructs, (b) a more holistic view of the IBE provides richer insights on the actual complexity that underlies IB research. Future conceptual and empirical studies that provide more comprehensive models of the IBE that overcome the usual "everything out there" are warranted.
{"title":"Is the 'International Business Environment' the Actual Context for IB Research?","authors":"Dan Li, M. Ferreira","doi":"10.2139/ssrn.1579344","DOIUrl":"https://doi.org/10.2139/ssrn.1579344","url":null,"abstract":"The International Business Environment (IBE) is argued to be the essential context for international business (IB) studies and the distinguishing factor from other management studies, and from studies of large scale enterprises. In this paper we argue for a greater environmental focus and illustrate how and how much the IBE has been included in published IB research. While extant research has often taken a uni-dimensional view, which has been mostly anchored in the cultural environment, we suggest that: (a) there is a need to developed more uni-and multi-dimensional environmental constructs, (b) a more holistic view of the IBE provides richer insights on the actual complexity that underlies IB research. Future conceptual and empirical studies that provide more comprehensive models of the IBE that overcome the usual \"everything out there\" are warranted.","PeriodicalId":430759,"journal":{"name":"INTL: Other Global Business Issues (Topic)","volume":"197 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125865393","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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