Palmon, Oded; Spivak, Avia - In: The Geneva Papers on Risk and Insurance Theory 32 (2007) 1, pp. 37-59
Adverse selection is often blamed for the malfunctioning of the annuities market. We simulate the impact of adverse selection on the consumption allocation of annuitants under alternative parameter values, and explore the resulting welfare implications. We show that, for most parameter values,...
