Asymmetric Information and Annuities

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Long-Term Care Insurance, Annuities and Asymmetric Information: The Case for Bundling Contracts.1

Within an asymmetric information set-up in which individuals di¤er in terms of their risk aversion and can choose whether or not to take preventative action, we illustrate in a uni…ed framework the equilibrium possibilities with stand-alone long-term care insurance and annuity contracts. With costs of administering insurance, so that insurance is unfair, we show the existence of an equilibrium ...

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ژورنال

عنوان ژورنال: Journal of Public Economic Theory

سال: 2010

ISSN: 1097-3923,1467-9779

DOI: 10.1111/j.1467-9779.2010.01462.x