The Economic Theory of Annuities by Eytan Sheshinski 4 ppt

... 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 ... tends to mitigate the effects of adverse selection because, when bundled, the negative correlation between the costs of these products reduces the overall var...

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

... 0.56 349 1 87 0. 242 486 0.3 947 15 0.399797 0.522278 88 0.207251 0.3 540 20 0.3603 64 0 .47 9 344 89 0.1 745 63 0.313509 0.321725 0 .43 52 14 90 0. 144 767 0.273776 0.2 843 38 0.390583 91 0.118099 0.23 544 4 0. 248 635 0. 346 256 92 ... 0 .44 045 1 0.586205 0.593975 0.706870 83 0.399581 0.5503 54 0.556727 0.6 743 71 84 0.3588 84 0.5131 34 0.518386 0.639 648 85 0.318805 0 .47 4 641 0...

Ngày tải lên: 21/06/2014, 07:20

... as before, by condition (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 ... (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 survival function of...

Ngày tải lên: 21/06/2014, 07:20

... the first period and c 1 is 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 ... 05 :46 pm chapter 04. tex 28 • Chapter 4 Finally, c ∗ w and c ∗ R satisfy the budget constraint c ∗ w  R 0 F (z) dz + c ∗ R  T R F (z) dz −  R 0 F (z)w(z) dz = 0. (4A .4)...

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

... MA 02138 December 20 04 The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. © 20 04 by Gary S. Becker, Kevin ... Henry and Chaloupka, Frank J. The Demand for Illicit Drugs,” Economic Inquiry, 37, No. 3, July 1999, pp. 40 1 -41 1. The Economic Theory of Illegal Goods: th...

Ngày tải lên: 23/03/2014, 20:20

... America 109876 543 21 iv August 22, 2007 Time: 09 :47 am prelims.tex The Economic Theory of Annuities Eytan Sheshinski princeton university press princeton and oxford iii August 22, 2007 Time: 09 :47 am prelims.tex To ... Time: 09 :47 am prelims.tex xvi August 22, 2007 Time: 09 :47 am prelims.tex viii August 22, 2007 Time: 09 :47 am prelims.tex The Economic Theory of An...

Ngày tải lên: 20/06/2014, 20:20

... 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 ... tends to mitigate the effects of adverse selection because, when bundled, the negative correlation between the costs of these products reduces the overall var...

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 ... determined by the second 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 (fertili...

Ngày tải lên: 20/06/2014, 20:20