Illiquid Life Annuities
In this article, we consider illiquid life annuity contracts and show that they may be preferred to Yaari (1965)'s liquid contracts. In an overlapping-generation economy, liquid life annuities are demanded only if the equilibrium is dynamically inefficient. Alternatively, an equilibrium displaying a positive demand for illiquid life annuities is efficient. In this latter case, the welfare at steady-state is larger if illiquid life annuity contracts are available.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: 200 Avenue de la République, Bât. G - 92001 Nanterre Cedex|
Web page: http://economix.fr
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gary Hansen & Selahattin Imrohoroglu, 2008.
"Consumption over the Life Cycle: The Role of Annuities,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 11(3), pages 566-583, July.
- Gary D. Hansen & Selahattin Imrohoroglu, 2006. "Consumption Over the Life Cycle: The Role of Annuities," NBER Working Papers 12341, National Bureau of Economic Research, Inc.
- B. Douglas Bernheim, 1989.
"How Strong are Bequest Motives? Evidence Based on Estimates of the Demand for Life Insurance and Annuities,"
NBER Working Papers
2942, National Bureau of Economic Research, Inc.
- Bernheim, B Douglas, 1991. "How Strong Are Bequest Motives? Evidence Based on Estimates of the Demand for Life Insurance and Annuities," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 899-927, October.
- Alexis Direr, 2010.
"Flexible Life Annuities,"
Journal of Public Economic Theory,
Association for Public Economic Theory, vol. 12(1), pages 43-55, 02.
- Helmuth Cremer & Jean-Marie Lozachmeur & Pierre Pestieau, 2010.
"Collective Annuities and Redistribution,"
- Cannon, Edmund & Tonks, Ian, 2008. "Annuity Markets," OUP Catalogue, Oxford University Press, number 9780199216994, May.
- Gollier, Christian, 2007.
"Intergenerational Risk-Sharing and Risk-Taking of a Pension Fund,"
IDEI Working Papers
42, Institut d'Économie Industrielle (IDEI), Toulouse.
- Gollier, Christian, 2008. "Intergenerational risk-sharing and risk-taking of a pension fund," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1463-1485, June.
- Christian Gollier, 2007. "Intergenerational Risk-Sharing and Risk-Taking of a Pension Fund," CESifo Working Paper Series 1969, CESifo Group Munich.
- Shlomo Benartzi & Alessandro Previtero & Richard H. Thaler, 2011. "Annuitization Puzzles," Journal of Economic Perspectives, American Economic Association, vol. 25(4), pages 143-64, Fall.
- Antoine Bommier, 2001.
"Uncertain lifetime and intertemporal choice : risk aversion as a rationale for time discounting,"
Research Unit Working Papers
0108, Laboratoire d'Economie Appliquee, INRA.
- Antoine Bommier, 2006. "Uncertain Lifetime And Intertemporal Choice: Risk Aversion As A Rationale For Time Discounting," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(4), pages 1223-1246, November.
- Jesus Fernández-Villaverde & Dirk Krueger, 2007.
"Consumption over the Life Cycle: Facts from Consumer Expenditure Survey Data,"
The Review of Economics and Statistics,
MIT Press, vol. 89(3), pages 552-565, August.
- Jesus Fernandez-Villaverde & Dirk Krueger, 2002. "Consumption over the Life Cycle: Facts from Consumer Expenditure Survey Data," NBER Working Papers 9382, National Bureau of Economic Research, Inc.
- Thomas Davidoff & Jeffrey R. Brown & Peter A. Diamond, 2003.
"Annuities and Individual Welfare,"
NBER Working Papers
9714, National Bureau of Economic Research, Inc.
- Davies, James B, 1981. "Uncertain Lifetime, Consumption, and Dissaving in Retirement," Journal of Political Economy, University of Chicago Press, vol. 89(3), pages 561-77, June.
- Horneff, Wolfram J. & Maurer, Raimond H. & Stamos, Michael Z., 2008. "Life-cycle asset allocation with annuity markets," Journal of Economic Dynamics and Control, Elsevier, vol. 32(11), pages 3590-3612, November.
- Blanchard, Olivier J, 1985.
"Debt, Deficits, and Finite Horizons,"
Journal of Political Economy,
University of Chicago Press, vol. 93(2), pages 223-47, April.
- Roman N. Schulze & Thomas Post, 2010. "Individual Annuity Demand Under Aggregate Mortality Risk," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 77(2), pages 423-449.
- Gourinchas, P.O. & Parker, J.A., 1997.
"Consumption Over the Life Cycle,"
9722, Wisconsin Madison - Social Systems.
- Pierre-Olivier Gourinchas & Jonathan A. Parker, 1999. "Consumption Over the Life Cycle," NBER Working Papers 7271, National Bureau of Economic Research, Inc.
- Gourinchas, Pierre-Olivier & Parker, Jonathan A, 2000. "Consumption Over the Life-Cycle," CEPR Discussion Papers 2345, C.E.P.R. Discussion Papers.
- Brugiavini, Agar, 1993. "Uncertainty resolution and the timing of annuity purchases," Journal of Public Economics, Elsevier, vol. 50(1), pages 31-62, January.
- Lee Lockwood, 2012.
"Bequest Motives and the Annuity Puzzle,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 15(2), pages 226-243, April.
- Lee Lockwood, 2011. "Code files for "Bequest Motives and the Annuity Puzzle"," Computer Codes 10-110, Review of Economic Dynamics.
- de la Croix,David & Michel,Philippe, 2002.
"A Theory of Economic Growth,"
Cambridge University Press, number 9780521001151, October.
- Jeffrey R. Brown & Amy Finkelstein, 2011. "Insuring Long-Term Care in the United States," Journal of Economic Perspectives, American Economic Association, vol. 25(4), pages 119-42, Fall.
When requesting a correction, please mention this item's handle: RePEc:drm:wpaper:2013-30. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valérie Mignon)
If references are entirely missing, you can add them using this form.