Social security and the failure of annuity markets
AbstractThis paper investigates the effect of asymmetric information on the annuities market when individuals differ in the probability of dying. Individual behaviour under live-insured and term-insured annuities is investigated. Unlike well-known results of Rothschild and Stiglitz, if an equilibrium exists, it must be a pooling equilibrium. Given the same information as the private sector, a planner can achieve an optimum under certain circumstances.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 35 (1988)
Issue (Month): 1 (February)
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Web page: http://www.elsevier.com/locate/inca/505578
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- Peter Townley & Robin Boadway, 1986. "Social Security and the Failure of Annuity Markets," Working Papers 652, Queen's University, Department of Economics.
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