Adverse Selection with individual- and joint-life annuities

摘要: This paper includes couples on the demand side and analyses their implications problem of adverse selection in annuity market. First, we examine pooling equilibrium for individual-life annuities show that presence rate return individuallife is lower case do not have advantage joint consumption "family public goods" as well a logarithmic utility function. Second, market joint-life annuities. Due to higher chance only one partner survives retirement, with short-lived partners put more weight survivor benefit than at least longer-lived partner. fact used by companies separate according partners' life-expectancies. Hence, find separating may exist. These results are obtained framework where mandated buy single persons When relaxing this assumption allowing choose between individual- annuities, long-lived while However, decide either type depending exogenous parameters. Accordingly, identify two different types equilibria.