"The author studies annuity rates in Chile and relates them with industry competition. He finds (1) that annuity insurance companies paying higher broker commissions paid lower annuity rates; and (2) a structural break of the long-run elasticity of annuity rates to the risk-free rate in 2001....

The general hypothesis that financial indexation to the CPI has been important for the development of the Chilean capital markets is analyzed from several perspectives. The effective maturity shortening of nominal bonds, the likely dollarization of longer term debt and the reduction of average...