Determinantes of AFP demand in Chile: New empirical evidence from individual data

Abstract

This article is the first one to use individual data to analyze the demand for
AFP in Chile. This study implements panel data techniques which allow us to
estimate the switch probability of an AFP customer. Results confirm the fundamental
role of sales agents, which was already suggested by previous studies
that have used aggregated data by AFP. Particularly, we show that although
price and return elasticity of demand are low, it raises notably when associated
to a sales agent visit.