Asymmetric information, long-term care insurance, and annuities: The case for bundled contracts

Journal of Risk and Insurance

Volumn 76, Issue 1, 2009, Pages 53-85

  Webb, David C ^a  

^a LONDON SCHOOL OF ECONOMICS   (United Kingdom)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 60049091793     PISSN: 00224367     EISSN: 15396975     Source Type: Journal    
DOI: 10.1111/j.1539-6975.2009.01288.x     Document Type: Article

References (30)

1. Barsky, R. B., F. T. Juster, M. S. Kimball, and M. D. Shapiro, 1997, Preference Parameters and Behavioural Heterogeneity: An Experimental Approach in the Health and Retirement Study, Quarterly Journal of Economics, 112 : 537 579.
2. Bodie, Z., 2003, Thoughts on the Future: Life-Cycle Investing in Theory and Practice, Financial Analysts Journal (January/February 24 29.
3. Brazell, D., J. Brown, and M. Warshawsky, 2007, Tax Issues and Life Care Annuities, in : J. Ameriks and O. Mitchell, eds., Recalibrating Retirement Spending and Saving (Oxford, UK : Oxford University Press pp. 295 317.
4. Brown, J. R., 2000, How Should We Insure Longevity Risk in Pensions and Social Security? An Issue in Brief, Center for Retirement Research at Boston College, August 2000, No. 4.
5. Brown, J. R., T. Davidoff, and P. Diamond, 2005, Annuities and Individual Welfare, American Economic Review, 95 : 1573 1590.
6. Brown, J. R., and A. Finkelstein, 2007, Why Is the Market for Long-Term Care Insurance So Small? Journal of Public Economics, 91 : 1967 1991.
7. Brown, J. R., and A. Finkelstein, 2009, The Private Market for Long-Term Care Insurance in the United States: A Review of the Evidence, Journal of Risk and Insurance, 76 : 5 29.
8. Brown, J. R., O. S. Mitchell, and J. Poterba, 2002, Mortality Risk, Inflation Risk, and Annuity Products, in : O. Mitchell, Z. Bodie, B. Hammond, and S. Zeldes, eds., Innovations in Retirement Financing (Philadelphia, PA : University of Pennsylvania Press pp. 175 197.
9. Brugiavini, A., 1993, Uncertainty Resolution and the Timing of Annuity Purchases, Journal of Public Economics, 50 : 31 62.
10. Cawley, J., and T. Philipson, 1999, An Empirical Examination of Information Barriers to Trade in Insurance Markets, American Economic Review, 89 : 827 846.
11. Chen, Y. P., 1994, A "Three-Legged Stool" for Financing Long-Term Care: Is It an Acceptable Approach? Journal of Case Management, 3 : 105 109.
12. Chiappori, P. A., B. Jullien, B. Salanie, and F. Salanie, 2006, Asymmetric Information in Insurance: General Testable Implications, Rand Journal of Economics, 37 : 783 798.
13. Cutler, D. M., A. Finkelstein, and K. McGarry, 2008, Preference Heterogeneity and Insurance Markets: Explaining a Puzzle of Insurance, American Economic Review: Papers & Proceedings, 98 : 157 162.
14. de Meza, D., and D. C. Webb, 2001, Advantageous Selection in Insurance Markets, Rand Journal of Economics, 32 : 249 262.
15. Eckstein, Z., M. S. Eichenbaum, and D. Peled, 1985, The Distribution of Wealth and Welfare in the Presence of Incomplete Annuity Markets, Quarterly Journal of Economics, 100 : 789 806.
16. Finkelstein, A., and K. McGarry, 2006, Multiple Dimensions of Private Information: Evidence From the Long-Term Care Insurance Market, American Economic Review, 96 : 938 958.
17. Finkelstein, A., and J. Poterba, 2002, Selection Effects in the United Kingdom Individual Annuities Market, Economic Journal, 28 50.
18. Finkelstein, A., and J. Poterba, 2004, Adverse Selection in Insurance Markets: Policyholder Evidence From the U.K. Annuity Market, Journal of Political Economy, 112 : 183 208.
19. Fluet, C., and F. Pennequin, 1997, Complete vs. Incomplete Insurance Contracts Under Adverse Selection with Multiple Risks, Geneva Papers on Risk and Insurance Theory, 10 : 81 101.
20. Hemenway, D., 1990, Propitious Selection, Quarterly Journal of Economics, 105 : 1063 1069.
21. Laffont, J. J., and J. C. Rochet, 1988, Stock Market Portfolios and the Segmentation of Insurance Market, Scandinavian Journal of Economics, 90 : 435 447.
22. Lakdawalla, D., and T. Philipson, 2002, The Rise in Old Age Longevity and the Market for Long-Term Care, American Economic Review, 91 : 295 306.
23. Lui, J. W., and M. J. Browne, 2007, First-Best in Insurance Markets With Transaction Costs and Heterogeneity, Journal of Risk and Insurance, 74 : 739 760.
24. Murtaugh, M., B. C. Spillman, and M. J. Warshawsky, 2001, In Sickness and in Health: An Annuity Approach to Financing Long-Term Care and Retirement Income, Journal of Risk and insurance, 68 : 225 253.
25. Pauly, M. V., 1990, The Rational Non-purchase of Long-Term Care Insurance, Journal of Political Economy, 98 : 153 168.
26. Philipson, T. J., and G. S. Becker, 1998, Old-Age Longevity and Mortality Contingent Claims, Journal of Political Economy, 106 : 551 573.
27. Rothschild, M., and J. Stiglitz, 1976, Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Incomplete Information, Quarterly Journal of Economics, 90 : 624 649.
28. Smart, M., 2000, Competitive Insurance Markets With Two Unobservables, International Economic Review, 41 : 153 170.
29. Yaari, M., 1965, Uncertain Lifetime, Life Insurance and the Theory of the Consumer, Review of Economic Studies, 32 : 137 150.
30. Wambach, A., 2000, Introducing Heterogeneity in the Rothschild-Stiglitz Model, Journal of Risk and Insurance, 67 : 579 592.