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retirement and two types of individuals, who differ in their life expectancy. In order to introduce the existence of limited …-time pension insurance, we consider a model where for each period of retirement separate contracts can be purchased. Demand for the …
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with two retirement periods. In this framework annuity companies can offer contracts with different payoffs over the … periods of retirement. Varying the time structure of the payoffs affects annuity demand and welfare of individuals with low …
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retirement. In order to introduce the existence of limited-time pension insurance, we assume that for each period of retirement …
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retirement. In order to introduce the existence of limited-time pension insurance, we assume that for each period of retirement …
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In a perfectly competitive market for annuities with full information, the price of annuities is equal to individuals' (discounted) survival probabilities. That is, prices are actuarially fair. In contrast, the pricing implicit in social security systems invariably allows for cross subsidization...
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