Note on the Optimum Pricing of Annuities

Eytan Sheshinski

Discussion Paper Series from The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem

Abstract: 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 between di¤erent risk groups males/females). We examine the utilitarian approach to the optimum pricing of annuities and show how the solution depends on the joint distribution of survival probailities and incomes in the population.

Pages: 8 pages
Date: 2000-03
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://ratio.huji.ac.il/sites/default/files/publications/dp326.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://ratio.huji.ac.il/sites/default/files/publications/dp326.pdf [302 Moved Temporarily]--> https://ratio.huji.ac.il/sites/default/files/publications/dp326.pdf)

Related works:
Working Paper: Note on the Optimum Pricing of Annuities (2003)
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:huj:dispap:dp326

Access Statistics for this paper

More papers in Discussion Paper Series from The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem Contact information at EDIRC.
Bibliographic data for series maintained by Michael Simkin ().