Optimum taxation of life annuities

dc.creator	Brunner, Johann K.
dc.creator	Pech, Susanne
dc.date	2006
dc.date.accessioned	2013-10-16T07:02:55Z
dc.date.available	2013-10-16T07:02:55Z
dc.date.issued	2013-10-16
dc.identifier	http://hdl.handle.net/10419/19106
dc.identifier	ppn:510010040
dc.identifier.uri	http://koha.mediu.edu.my:8181/xmlui/handle/10419/19106
dc.description	The market for private life annuities is characterised by adverse selection, that is, contracts offer lower than fair payoffs to individuals with low life expectancy. Moreover, life expectancy and income have been found to be positively correlated. The paper shows that a linear tax on annuity payoffs, which raises more revenues from long-living individuals than from short-living, represents an appropriate instrument for redistribution, in addition to an optimally designed labour income tax. Further, we find that a nonlinear tax on annuity payoffs can be directly employed to correct the distortion of the rate of return caused by asymmetric information. These results are contrasted with theoretical findings concerning the role of a tax on capital income.
dc.language	eng
dc.publisher
dc.relation	CESifo working papers 1642
dc.rights	http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject	G2
dc.subject	H2
dc.subject	ddc:330
dc.subject	optimum taxation
dc.subject	life annuities
dc.subject	adverse selection
dc.subject	Optimale Besteuerung
dc.subject	Leibrente
dc.subject	Kapitalertragsteuer
dc.subject	Adverse Selection
dc.title	Optimum taxation of life annuities
dc.type	doc-type:workingPaper

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