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"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. Moreover, this structural break coincided with the submission of a new …
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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. Moreover, this structural break coincided with the submission of a new …
Persistent link: https://www.econbiz.de/10012553794
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Regulation in countries that have adopted defined contribution (DC) pension systems based on savings accounts typically includes minimum return guarantees (MRG) provisions to limit the risk of financial downturns. This paper studies the consequences of this regulation over asset allocation...
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We show empirically that public credit information increases competition in credit markets. We access data that cover all credit card borrowers in Chile and include details about relationship borrowers have with each lender. We exploit a natural experiment whereby a non-bank lender's portfolio...
Persistent link: https://www.econbiz.de/10012839962
This paper develops a model where large financial intermediaries subject to systemic runs internalize the effect of their leverage on aggregate risk, returns and asset prices. Near the steady-state, they restrict leverage to avoid the risk of a run which gives rise to an accelerator effect. For...
Persistent link: https://www.econbiz.de/10012604798