Denial of Death and Economic Behavior
- Topics:
- Insurance
- Tags:
- Business Operations,
- Corporate Insurance,
- Denial,
- Finance,
- Financial Planning,
- Free Trade,
- Insurance,
- National Bureau Of Economic Research,
- Taxes
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Overview: This paper models denial of death and its effect on economic behavior. Attempts to reduce death anxiety and the possibility of denial of mortality-relevant information interact with intertemporal choices and may lead to time-inconsistent behavior and other "behavioral" phenomena. The paper shows that the mere possibility of engaging in this kind of denial leads to time-inconsistent but efficient behavior. Refusal to face up to the reality of death may help explain a wide range of empirical phenomena, including the underutilization of tax-advanced inter vivos gifts and inadequate purchase of life insurance.
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Format: PDF | Size: 301KB | Date: Jun 2005 | Pages: 37




