Selection and Redistribution in the Irish Tontines of 1773, 1775, and 1777

Yikang Li and Casey Rothschild

Journal of Risk & Insurance, 2020, vol. 87, issue 3, 719-750

Abstract: We construct and analyze a new data set on the mortality experience of the nominees of the 1773, 1775, and 1777 Irish tontines. The active participation of Genevan speculators in these Irish tontines has been well documented. We use our new data to quantify both the extent to which these nominees were longer‐lived and the financial consequences of their enhanced longevity. The Genevan nominees were indeed notably longer‐lived than non‐Genevan nominees—particularly so for the 50 nominees selected by a Genevan investment syndicate. Their enhanced longevity had only trivial financial consequences for the issuer, but it led to significant redistribution from non‐Genevan to Genevan investors. We highlight the implications of this across‐group distributional risk for modern proposals to introduce tontine‐like elements into modern retirement pensions.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://doi.org/10.1111/jori.12274

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jrinsu:v:87:y:2020:i:3:p:719-750

Ordering information: This journal article can be ordered from
http://www.wiley.com/bw/subs.asp?ref=0022-4367

Access Statistics for this article

Journal of Risk & Insurance is currently edited by Joan T. Schmit

More articles in Journal of Risk & Insurance from The American Risk and Insurance Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().