@techreport{Brunner2006Optimum,
abstract = {The market for private life annuities is characterised by adverse selection, that is, contracts
offer lower than fair payoffs to individuals with low life expectancy. Moreover, life
expectancy and income have been found to be positively correlated. The paper shows that a
linear tax on annuity payoffs, which raises more revenues from long-living individuals than
from short-living, represents an appropriate instrument for redistribution, in addition to an
optimally designed labour income tax. Further, we find that a nonlinear tax on annuity payoffs
can be directly employed to correct the distortion of the rate of return caused by asymmetric
information. These results are contrasted with theoretical findings concerning the role of a tax
on capital income.},
author = {Johann K. Brunner and Susanne Pech},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {G2; H2; 330; optimum taxation; life annuities; adverse selection; Optimale Besteuerung; Leibrente; Kapitalertragsteuer; Adverse Selection},
language = {eng},
number = {1642},
title = {Optimum taxation of life annuities},
type = {CESifo working papers},
url = {http://hdl.handle.net/10419/19106},
year = {2006}
}
