The Economic Theory of Annuities

by Eytan Sheshinski

Annuities are financial products that guarantee the holder a fixed return so long as the holder remains alive, thereby providing insurance against lifetime uncertainty. The terms of these contracts depend on the information available to insurance firms. Unlike age and gender, information about individual survival probabilities cannot be readily ascertained. This asymmetric information causes market inefficiencies, such as adverse selection.

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• Format: Hardcover
• Language: English
• ISBN: 0691133050
• ISBN13: 9780691133058
• Release Date: November 2007
• Publisher: Princeton University Press
• Length: 184 Pages
• Weight: 0.95 lbs.
• Dimensions: 0.8" x 6.6" x 9.1"