演講者簡介 : Professor Yu received his Ph.D. in Economics from the University of Minnesota in 2016. He is currently a lecturer at the University of New South Wales, Australia. His research fields are Public Economics, Behavioral Economics, and Contract Theory.
演講摘要 : The annuity market in the US has been historically small. What drives this fact? The annuity market could be small because of adverse selection or supply-side frictions in insurance markets. Identifying demand- and supply-side frictions is difficult without data separately measuring exogenous shocks and endogenous responses. In this paper, we provide a novel identification using annuity price data and regulatory capital requirements. Using publicly available data, we document a robust relationship between shocks originating in the corporate bond market and annuity price markups. We show that this relationship supports a standard model of adverse selection with an incomplete bond market.
