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TITLE
"The Demand for Life Insurance in the United States: Long-Run Versus Short-Run," Journal of Insurance Issues, K. Thomas Liaw, Ronald L. Moy, and John Chuang. October 1994, Vol. XVII, No. 2, pp. 73-84.

ABSTRACT
Previous research on life insurance purchases has focused on the long-run demand function. In this paper, we use a speed of adjustment model to determine how quickly households adjust their holdings of life insurance to the optimal level. Our results support the hypothesis that institutional constraints and costs of adjustment keep individuals from instantaneously adjusting their demand for life insurance to optimal levels.