The Economic Theory of Annuities 3 pdf
The Economic Theory of Annuities by Eytan Sheshinski_1 pdf
... tends to mitigate the effects of adverse selection because, when bundled, the negative correlation between the costs of these products reduces the overall variation of the costs of the bundle with individual ... chapter15.tex 132 • Chapter 15 bundles of annuities and long-term care insurance (at ages 65 and 75) and found that the cost of the hypothetical bundle...
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The Economic Theory of Annuities by Eytan Sheshinski_6 pdf
... (x) F (x) dx dz (5 .33 ) Optimum consumption decreases with age, its rate of decline being equal to the product of the inverse of the coefficient of relative risk aversion and the hazard rate. Optimum ... total consumption in the second period. The second term is the sum of the expected utilities of two surviving individuals, while the third is the expected ut...
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The Economic Theory of Annuities by Eytan Sheshinski_3 ppt
... description of the motivation for and the stipulations of these annuities from a textbook for actuaries: These are usually effected to avoid the disappointment that is often felt in the event of the ... to make the price of period- certain annuities commensurate with the price of regular annuities. These annuities are available in the United Kingdom, where th...
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The Economic Theory of Annuities by Eytan Sheshinski_4 ppt
... 0.51 838 6 0. 639 648 85 0 .31 8805 0.474641 0.479222 0.602670 86 0.279 836 0. 435 065 0. 439 561 0.5 634 91 87 0.242486 0 .39 4715 0 .39 9797 0.522278 88 0.207251 0 .35 4020 0 .36 036 4 0.47 934 4 89 0.1745 63 0 .31 3509 ... 0 .32 1725 0. 435 214 90 0.144767 0.2 737 76 0.28 433 8 0 .39 05 83 91 0.118099 0. 235 444 0.248 635 0 .34 6256 92 0.094678 0.199121 0.214996 0 .30 2021 93 0.074510...
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The Economic Theory of Annuities by Eytan Sheshinski_5 doc
... (4.4). When there is a positive rate of interest on assets, the competitive rate of return on annuities is equal to the rate of interest plus the hazard rate. The reason is obvious: The issuers of annuities ... condition the rate of return on annuities on the level of these expenditures by annuitants. Let the rate of return faced by individuals at August 3...
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The Economic Theory of Annuities by Eytan Sheshinski_8 potx
... accross states of nature). Sequential annuity market equilibrium is characterized by the purchase of long-term annuities, short sale of some of these annuities later on, or the purchase of additional short-term ... longevity risk. Further, to respond to the desire of individuals for flexibility, the model should allow for short sales of annuities purchased early or...
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The Economic Theory of Annuities_3 pdf
... and efficiency (1/ε h ) considerations. The implication of ( 13. 14) for the optimum pricing of annuities depends on the welfare function, W, and on the joint distribution of incomes, (y 1 , ,y H ), and ... Pricing of Annuities • 1 13 13. 3 Second-best Optimum Pricing of Annuities Governments do not engage, for well-known reasons, in unconstrained lump-sum redistributi...
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The Economic Theory of Annuities_4 pdf
... follow the standard assumption that the sign of the price of each good changes in the opposite direction to the sign of profits from sales of this good. The following assumption about the relation ... textbook for actuaries: These are usually effected to avoid the disappointment that is often felt in the event of the early death of an annuitant. The calculatio...
Ngày tải lên: 20/06/2014, 20:20
Sample chapter for the economic theory of annuities_1 pdf
... Substituting the above definition of h(z,α,g), we obtain (12.4). August 18, 2007 Time: 11:06am chapter 13. tex Utilitarian Pricing of Annuities • 1 13 13. 3 Second-best Optimum Pricing of Annuities Governments ... fundamental equation of stable population theory: ∞ 0 e −gz F (z,α)b(z) dz = 1, (12.4) where b(z) is the age-specific birthrate (fertility) function. The magnit...
Ngày tải lên: 21/06/2014, 09:20
Sample chapter for the economic theory of annuities_2 pdf
... follow the standard assumption that the sign of the price of each good changes in the opposite direction to the sign of profits from sales of this good. The following assumption about the relation ... annuities. These annuities are available in the United Kingdom, where they are called protected annuities. It is interesting to quote a description of the motivat...
Ngày tải lên: 21/06/2014, 09:20