Life-Insured Annuities: Market Failure and Policy Dilemma

Peter G. C. Townley

Canadian Journal of Economics, 1990, vol. 23, issue 3, 546-62

Abstract: Inasmuch as private annuity markets fail because of adverse selection, retirees would benefit if they could spend at least some of their accumulated (non-social security) wealth on publicly provided annuities. Yet governments, although capable of improving upon the competitive outcome, typically do not operate such plans. Whereas it may be impossible for a government to implement an optimal scheme because of informational constraints, other potentially welfare-enhancing compulsory and voluntary annuity plans are feasible. However, if they are ranked on both economic and political criteria, neither dominates. This dilemma may be one reason for government inertia in this area.

Date: 1990
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://links.jstor.org/sici?sici=0008-4085%2819900 ... AMFAP%3E2.0.CO%3B2-Z (text/html)
only available to JSTOR subscribers

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:cje:issued:v:23:y:1990:i:3:p:546-62

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().