The Economic Theory of Annuities by Eytan Sheshinski 3 ppt

... 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 was lower by 3 to 5 percent compared to the cost of these ... tends to mitigate the effects of adverse selection because, when bundled, the negative correlation between the costs of these products reduces the ov...

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

... 0.51 838 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...

Ngày tải lên: 21/06/2014, 07:20

... 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, 2007 Time: 04:13pm chapter07.tex Moral Hazard • 53 age ... expectancy of the owners. The other risk class experiences a loss for the opposite reason. Another important implication of the fact that in equilibrium c...

Ngày tải lên: 21/06/2014, 07:20

... (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...

Ngày tải lên: 21/06/2014, 07:20

... 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...

Ngày tải lên: 21/06/2014, 07:20

... Henry and Chaloupka, Frank J. The Demand for Illicit Drugs,” Economic Inquiry, 37 , No. 3, July 1999, pp. 401-411. The Economic Theory of Illegal Goods: the Case of Drugs Gary S. Becker, Kevin ... This would be a further reason why the social value of the consumption of drugs was below the private values of individuals. Of course, if greater consumption by...

Ngày tải lên: 23/03/2014, 20:20

... encouraging discussions on the implementation of this idea with people who run pension funds. It is very much in the spirit of the agenda put forward by Robert Shiller in The New Financial Order (20 03) : There is ... Longevity 30 5 .3 Positive Time Preference and Rate of Interest 32 5.4 Partial Annuitization: No Short-term Annuity Market 33 5.5 Partial Annuitization: L...

Ngày tải lên: 20/06/2014, 20:20

... 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 was lower by 3 to 5 percent compared to the cost of these ... tends to mitigate the effects of adverse selection because, when bundled, the negative correlation between the costs of these products reduces the ov...

Ngày tải lên: 20/06/2014, 20:20

... 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...

Ngày tải lên: 20/06/2014, 20:20