No CrossRef data available.
Article contents
Behavior of Canadian life annuity prices
Published online by Cambridge University Press: 21 June 2023
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.
Keywords
- Type
- Article
- Information
- Copyright
- Copyright © The Author(s), 2023. Published by Cambridge University Press