Horneff, Wolfram J.; Maurer, Raimond; Mitchell, Olivia S.; … - 2007
risk due to interest rates, stocks, and inflation are omitted). In an
important recent extension of that work, Davidoff … payout annuities
can hedge inflation risk better than equity-linked annuities, by investing the underlying funds in …
inflation-indexed bonds. At the same time, though, they find that pure equity-linked annuities
can generate greater utility …