Illiquid Life Annuities

Hippolyte d'Albis and Johanna Etner

MPRA Paper from University Library of Munich, Germany

Abstract: In this article, we consider illiquid life annuity contracts and show that they may be preferred to Yaari (1965)’s liquid contracts. In an overlapping-generation economy, liquid life annuities are demanded only if the equilibrium is dynamically inefficient. Alternatively, an equilibrium displaying a positive demand for illiquid life annuities is efficient. In this latter case, the welfare at steady-state is larger if illiquid life annuity contracts are available.

Keywords: Lifes Annuities; Overlapping generation models (search for similar items in EconPapers)
JEL-codes: D11 (search for similar items in EconPapers)
Date: 2013-07-16
New Economics Papers: this item is included in nep-dge and nep-mic
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https://mpra.ub.uni-muenchen.de/50751/1/MPRA_paper_50751.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/75130/1/MPRA_paper_75130.pdf revised version (application/pdf)

Related works:
Journal Article: Illiquid life annuities (2018)
Working Paper: Illiquid Life Annuities (2018)
Working Paper: Illiquid Life Annuities (2018)
Working Paper: Illiquid Life Annuities (2013)
Working Paper: Illiquid Life Annuities (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:50751

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