Review of The Economic Theory of Annuities 7 doc

... y, (14.24) where a is the amount of annuities, z is expected lifetime, b is the amount of life insurance (=bequests), and y is the amount of the numeraire. Utility of consumption, u, and the utility from ... competitive equilibrium, the price of an annuity for type α individuals is z(α), and the prices of life insurance and of the numeraire are 1. All individual...

Ngày tải lên: 21/06/2014, 00:20

... 0. 877 234 76 0. 670 393 0 .77 1044 0 .78 573 3 0.858 575 77 0.635149 0 .74 373 5 0 .75 8039 0.838109 78 0.598456 0 .71 5046 0 .72 8 578 0.81 579 9 79 0.560408 0.6850 27 0.6 973 60 0 .79 1601 80 0.521200 0.653585 0.664443 0 .76 5431 81 ... 0.826 172 0.885 875 0.899490 0.936004 72 0 .79 7493 0.865541 0. 879 829 0.923386 73 0 .76 7666 0.843998 0.858 678 0.909496 74 0 .73 6589 0.8211 57...

Ngày tải lên: 21/06/2014, 00:20

... 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 utility of one survivor. The budget constraint ... obtained by the issuers of annuities on the survival probabilities of customers. In chapter 7 we shall discuss the impact of such information on the an...

Ngày tải lên: 21/06/2014, 00:20

... in insurance markets: The cause of the inefficiency is that individuals disregard the effect of their actions on the equilibrium rate of return on annuities. Essentially, these distortions are ... years has focused on the design of SS reforms aimed at closing these deficits. The issues involved are not only the economics of annuities but also much broader issues such...

Ngày tải lên: 21/06/2014, 00:20

... 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 ... variety of refundable annuities. Type r i ≥ 0 annuities are annuities that each guar- antee a refund of r i when presented by the holder in period 1. Th...

Ngày tải lên: 21/06/2014, 00:20

... defined, 67; empirical importance of, 67; general model for, 69 71 ; proof of, 76 ; rate of return and, 71 ; refundable annuities and, 144–49; risk class and, 67 76 after-tax retirement annuities ... Press. Mirrlees, J. A. 1 971 . An exploration in the theory of optimum income taxation. Review of Economic Studies 38(2): 175 –208. August 18, 20 07 Time: 11:35am index.te...

Ngày tải lên: 21/06/2014, 00:20

... 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...

Ngày tải lên: 21/06/2014, 07:20

... 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...

Ngày tải lên: 21/06/2014, 07:20

... 0. 877 234 76 0. 670 393 0 .77 1044 0 .78 573 3 0.858 575 77 0.635149 0 .74 373 5 0 .75 8039 0.838109 78 0.598456 0 .71 5046 0 .72 8 578 0.81 579 9 79 0.560408 0.6850 27 0.6 973 60 0 .79 1601 80 0.521200 0.653585 0.664443 0 .76 5431 81 ... 0.826 172 0.885 875 0.899490 0.936004 72 0 .79 7493 0.865541 0. 879 829 0.923386 73 0 .76 7666 0.843998 0.858 678 0.909496 74 0 .73 6589 0.8211 57...

Ngày tải lên: 21/06/2014, 07:20

... (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 ... (8.21), the interpretation of this result is that the flow of returns from annuities held at age M can be matched, using the relevant risk-class surviv...

Ngày tải lên: 21/06/2014, 07:20