Swiss Journal of Economics and Statistics

Table 6 Direct and indirect effects of motives and literacy

From: What matters in the annuitization decision?

Dependent variable:	Selected annuity = Yes
Variables	Direct effect	Indirect effect
Motives
Liquidity	− 0.357***	− 0.128**
Liquidity	(0.061)	(− 0.193, − 0.074)
Family risk pooling	− 0.123**	− 0.173
Family risk pooling	(0.053)	(− .064, 0.030)
Bequest	− 0.015	− 0.005
Bequest	(0.047)	(− 0.046, 0.034)
Investment frame	− 0.370***	− 0.138**
Investment frame	(0.084)	(− 0.214, − 0.072)
Mortality salience	− 0.100**	− 0.023
Mortality salience	(0.043)	(− 0.060, 0.011)
Self-selection	0.228***	0.011
Self-selection	(0.072)	(− 0.050, 0.073)
Literacy
Basic annuity literacy	0.279***	0.277**
Basic annuity literacy	(0.108)	(0.195, 0.379)
Financial literacy	0.014	− 0.120**
Financial literacy	(0.079)	(− 0.205, − 0.048)

This table presents the log-odds direct and indirect effects of the motive and literacy variables. The mediator is taken as annuity antipathy (dislike of annuities). The dependent variable is whether the individual selected the annuity in the hypothetical scenario question. Robust standard errors and 95% CI in parentheses for direct and indirect effects. Effects are expressed in log-odds. ***p < 0.01, **p < 0.05, *p < 0.1

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