Impavido, GregorioThorburn, CraigWadsworth, Mike2013-07-012013-07-012004-02https://hdl.handle.net/10986/14315Voluntary annuity markets are, in most countries, smaller than what the theoretical and part of the empirical literature would suggest. There are both demand and supply constraints that hamper the development of annuity markets. In particular, traditional products available in most countries can require excessive minimum capital requirements for given investment opportunities available to providers. Investment and longevity risk should be shared between providers and annuitants so that supply constraints can be relaxed. Alternative annuity products, which imply risk sharing, could be backed by substantially lower capital investments or, equivalently, provided at substantially lower prices to consumers.en-USCC BY 3.0 IGOACTUARIESADVERSE SELECTIONANNUITIESANNUITIES MARKETSANNUITYANNUITY PROVIDERSASSETSASYMMETRIC INFORMATIONBANK DEPOSITSBASIC PENSIONBONDSCAPITAL MARKETSCAPITAL REQUIREMENTSCOMPETITIVENESSCONCEPTUAL FRAMEWORKCONSUMERSCPIDEFERRED ANNUITIESDISCOUNT RATEDISCOUNT RATESDISPOSABLE INCOMEDISTRIBUTION OF WEALTHECONOMIES OF SCALEEMPIRICAL ANALYSISEMPIRICAL EVIDENCEEMPIRICAL STUDIESEXPECTED PRESENT VALUEEXPECTED PRESENT VALUESEXPECTED UTILITYFINANCIAL ASSETSFINANCIAL INSTRUMENTSFINANCIAL MARKETSFINANCIAL SECTORFUTURE RESEARCHGDPGROWTH POTENTIALHOUSINGINCOMPLETE MARKETSINDEXED ANNUITYINDIFFERENCE CURVESINDIVIDUAL ACCOUNTSINFLATIONINFLATION RISKINSURANCEINSURANCE MARKETSINSURANCE PRODUCTSINSURANCE RESERVESINSURERSINTEREST RATEINTEREST RATESINTERGENERATIONAL TRANSFERSINVESTMENT RISKLESS DEVELOPED COUNTRIESLIFE ANNUITIESLIFE CYCLE HYPOTHESISLIFE EXPECTANCYLIFE INSURANCELIFE INSURANCE COMPANIESLIFE INSURANCE PREMIUMSLIQUIDITYLONGEVITY INSURANCELONGEVITY RISKMANDATORY SAVINGSMARGINAL UTILITYMORTALITY TABLESNET WORTHPENSION LIABILITIESPENSION PLANSPENSION REFORMPENSION SYSTEMPENSION SYSTEMSPENSIONSPOLICY MAKERSPORTFOLIO CHOICEPREMIUMSPRIVATE INFORMATIONPRIVATE SAVINGSRATESREAL INTEREST RATERESERVESRETIREESRETIREMENTRETIREMENT AGERETIREMENT BENEFITSRETIREMENT INCOMERISK AVERSERISK AVERSIONRISK SHARINGSAVINGSSINGLE LIFE ANNUITYSOCIAL SAFETY NETSOCIAL SECURITYSTOCKSSTREAMSSUBSTITUTION EFFECTTAX TREATMENTUTILITY FUNCTIONUTILITY FUNCTIONSVALUATIONVARIABLE ANNUITIESVOLUNTARY ANNUITY MARKETSWEALTH RETIREMENTANNUITIESPENSIONSINVESTMENTSTOCKS & SHARESRISK FACTORSPOVERTYWorld Bank10.1596/1813-9450-3208