Dr Cormac O'Dea: all content

Showing 1 – 20 of 83 results

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Survival pessimism and the demand for annuities

Working Paper

The “annuity puzzle” refers to the fact that annuities are rarely purchased despite the longevity insurance they provide. Most explanations for this puzzle assume that indi-viduals have accurate expectations about their future survival. We provide evidence that individuals misperceive their mortality risk, and study the demand for annuities in a setting where annuities are priced by insurers on the basis of objectively-measured survival probabilities but in which individuals make purchasing decisions based on their own subjective survival probabilities. Subjective expectations have the capacity to explain significant rates of non-annuitization, yielding a quantitatively important explanation for the annuity puzzle.

25 January 2019

Publication graphic

Dynamic Economics in practice


Slides and software used to introduce the study of inter-temporal life-cycle models of consumption and savings and support the development of code to solve these type of problems numerically.

8 January 2019

Journal graphic

Why are Households that Report the Lowest Incomes So Well-off?

Journal article

We document that households in the UK with extremely low measured income tend to spend much more than those with merely moderately low income. This phenomenon is evident throughout three decades worth of microdata and across different employment states, levels of education and marital statuses.

24 October 2017

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Do the rich save more? Evidence from linked survey and administrative data

Journal article

The nature of the relationship between lifetime income and saving rates is a longstanding empirical question and one that has been surprisingly difficult to answer. We use a new data set containing both individual survey data on wealth holdings and administrative data on earnings histories to examine this question.

4 October 2017

Presentation graphic

Individual mortality expectations


We document evidence on individual expectations of survival to older age and implications of survival "pessimism" for economic behaviour.

29 June 2017

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Discount rate heterogeneity among older households: a puzzle?

Journal article

We put forward a method for estimating discount rates using wealth and income data. We build consumption from these data using the budget constraint. Consumption transitions yield discount rates by household groups. Applying this technique to a sample of older households, we find a similar distribution to those previously estimated using field data, though with a much lower mean than those found using experiments. Surprisingly, among this older population, patience is negatively correlated with education and numeracy. This goes against the positive correlation found for younger populations in experiments and some field studies. We discuss potential explanations for this result.

1 April 2017

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Financial Incentives to Work: Comparing Ireland and the UK


This paper provides a comprehensive comparison of the financial incentive to work in Ireland and the UK. It uses closely harmonised tax and benefit microsimulation models for both countries, based on household survey data, to provide an accurate and representative picture of the financial incentive to be in employment and to progress facing key groups in both countries.

20 June 2016

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Household wealth data and public policy

Journal article

This special issue of Fiscal Studies brings together a set of papers on the collection and analysis of household-level data on wealth.

31 March 2016

Presentation graphic

Attitudes towards saving


This presentation was given at an event to launch a report on the evolution of wealth and attitudes towards saving, at the Institute for Fiscal Studies on 19 November 2015.

19 November 2015