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- Title
Behavior of Canadian life annuity prices.
- Authors
Charupat, Narat; Kamstra, Mark J.
- Abstract
We examine the behavior of Canadian life annuity prices by measuring how quickly and fully they respond to changes in market interest rates. The price responses, though not immediate, start relatively quickly and become more complete over time. Over the whole sample period, the responses appear to be asymmetric – annuity providers generally raise prices faster when interest rates decline than reduce prices when the opposite occurs, which is disadvantageous to annuity customers. In addition, we find unusual annuity price behavior during the period of the 2008 financial crisis.
- Subjects
CANADA; PRICES; ANNUITIES; GLOBAL Financial Crisis, 2008-2009; PRICE increases; INTEREST rates; CONSUMERS
- Publication
Journal of Pension Economics & Finance, 2024, Vol 23, Issue 2, p202
- ISSN
1474-7472
- Publication type
Article
- DOI
10.1017/S1474747223000100