التفاصيل البيبلوغرافية
| العنوان: |
What's Wrong with Annuity Markets? |
| المؤلفون: |
Verani, Stéphane, Yu, Pei Cheng |
| المصدر: |
Journal of the European Economic Association; Aug2024, Vol. 22 Issue 4, p1981-2024, 44p |
| مصطلحات موضوعية: |
INTEREST rates, INTEREST rate risk, GLOBAL Financial Crisis, 2008-2009, CAPITAL requirements, PRICES, ANNUITIES |
| مستخلص: |
We show that the supply of U.S. life annuities is constrained by interest rate risk. We identify this effect using annuity prices offered by life insurers from 1989 to 2019 and exogenous variations in contract-level regulatory capital requirements. The cost of interest rate risk management—conditional on the effect of adverse selection—accounts for about half of annuity markups, or 8 percentage points. The contribution of interest rate risk to annuity markups sharply increased after the Global Financial Crisis, suggesting new retirees' opportunities to transfer their longevity risk are unlikely to improve in a persistently low interest rate environment. [ABSTRACT FROM AUTHOR] |
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| قاعدة البيانات: |
Complementary Index |
