Economic Theory of Annuities (eBook)

Eytan Sheshinski (Autor)

eBook Download: PDF

2021
184 Seiten
Princeton University Press (Verlag)
978-1-4008-2942-2 (ISBN)

Infos

Annuities are financial products that guarantee the holder a fixed return so long as the holder remains alive, thereby providing insurance against lifetime uncertainty. The terms of these contracts depend on the information available to insurance firms. Unlike age and gender, information about individual survival probabilities cannot be readily ascertained. This asymmetric information causes market inefficiencies, such as adverse selection. Groundbreaking in its scope, The Economic Theory of Annuities offers readers a theoretical analysis of the functioning of private annuity markets. Starting with a general analysis of survival functions, stochastic dominance, and characterization of changes in longevity, Eytan Sheshinski derives the demand for annuities using a model of individuals who jointly choose their lifetime consumption and retirement age. The relation between life insurance and annuities that have a bequest option is examined and "e;annuity options"e; are proposed as a response to the lack of secondary markets. This book also investigates the macroeconomic policy implications of annuities and changes in longevity on aggregate savings. Sheshinski utilizes statistical population theory to shed light on the debate of whether the surge in savings and growth in Asia and other countries can be attributed to higher longevity of the population and whether this surge is durable. This book shows how understanding annuities becomes essential as governments that grapple with insolvency of public social security systems place greater emphasis on individual savings accounts.

Produkt-Details

• Erscheint lt. Verlag: 11.5.2021
• Zusatzinfo: 26 line illus.
• Sprache: englisch
• Themenwelt: Sozialwissenschaften ► Politik / Verwaltung ► Staat / Verwaltung
• Themenwelt: Wirtschaft ► Allgemeines / Lexika
• Themenwelt: Betriebswirtschaft / Management ► Spezielle Betriebswirtschaftslehre ► Versicherungsbetriebslehre
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Mikroökonomie
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Wirtschaftspolitik
• Schlagworte: Account (accountancy) • actuarial science • adverse selection • after-tax retirement annuities (ATRA) • age composition effect • aggregate resource constraint • Annuitant • Annuity • Annuity Puzzle • asset • Asymmetric information • bank run • Behavioral Economics • Behavioral models • beneficiary • bequests • Bounded Rationality • Budget • budget constraint • Bundling • Calculation • certainty equivalence • Commodity • Comparative statics • Competitive equilibrium • Conditional probability • consumer • consumption: after retirement • Consumption (Economics) • cost effects • credit card debt • Creditor • cross-subsidization • Crowding out (economics) • Cumulative Return • Default rate • Defined benefit pension plan • Demand curve • Demand elasticity • developed country • Disability benefits • discounting • Discounts and allowances • Economic equilibrium • Economic Growth • economic interventionism • economy • envelope theorem • Equilibrium • Equilibrium Quantity • expected lifetime utility • exponential function • Externality • fertility rate • Finance • Finance Act • Financial innovation • Financial Instrument • Financial Market • Financial Services • full annuitization • Game Theory • general equilibrium effect • General Equilibrium Theory • Government • Hazard Rate • hyperbolic discounters • hyperbolic discounting • income • income distribution • Income Tax • Information • insurance • insurance policy • Interest Rate • Investment • investment policy • Investor • labor utility • Lagrange multiplier • life annuity • Life Expectancy • life insurance • liquidity • Longevity • Longevity risk • Lump sum • Lump-Sum Payment • Lump-sum tax • Marginal cost • marginal utility • Market (economics) • Market Economy • market liquidity • Market Price • Markets • Market Segmentation • national defined contribution systems • normal retirement age (NRA) • optimum commodity taxation • Pareto Efficiency • pareto optimality • Payment • payout • Pension • pension fund • Pension Funds • pooling equilibrium • Pooling (resource management) • Present Value • price • Price elasticity of demand • Pricing • Probability • Public Economics • Purchase Price • Rate of return • Rational Choice Theory • refundable annuities • replacement rate • Retirement age • Revaluation • Revenue • reverse life insurance • Risk Aversion • risk class • savings account • Self Selection • Sequential Equilibrium • Short sale (real estate) • Social Insurance • social security benefits • social welfare function • stipend • Subsidy • Supply (economics) • Tax • Taxes • Tax Rate • time preference • Ulpianus, Domitius • Unemployment • unintended bequests • unit cost • Utility • Value (economics) • Wages • Welfare Economics • World Bank
• ISBN-10: 1-4008-2942-9 / 1400829429
• ISBN-13: 978-1-4008-2942-2 / 9781400829422