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This paper studies the problem of redistribution between individuals having different mortality rates. We use a … problem is analyzed in the contexts of full information and asymmetric information on mortality rates. …
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This paper studies the problem of redistribution between individuals having different mortality rates. We use a … problem is analyzed in the contexts of full information and asymmetric information on mortality rates …
Persistent link: https://www.econbiz.de/10013138302
We study the impact of a fully-funded social security system in an economy with heterogeneous consumers. The unobservability of individual health conditions leads to adverse selection in the private annuity market. Introducing social security — which is immune to adverse selection — affects...
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