Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73232
Authors: 
Brunner, Johann K.
Pech, Susanne
Year of Publication: 
2002
Series/Report no.: 
Working Paper, Department of Economics, Johannes Kepler University of Linz 0204
Abstract: 
This paper investigates the effect of adverse selection on the private annuity market in a model with two periods of retirement. In order to introduce the existence of limited-time pension insurance, we assume that for each period of retirement separate contracts can be purchased. Demand for the two periods can be decided either sequentially or simultaneously. We show that different risk-groups prefer different types of contracts, and that only the sequential contracts, which are favourable for the long-living individuals, represent an equilibrium.
Subjects: 
annuity markets
adverse selection
uncertain lifetimes
equilibrium
JEL: 
D82
D91
G22
Document Type: 
Working Paper

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