The Role of Annuity Markets in Financing Retirement

"Peter Diamond is one of the world's premier economists. This path-breaking book extends the traditional theory of optimal taxation to multi-period models. But it also considers how optimal tax rules/formulas need to be modified if agents are myopic, borrowing constrained, or time inconsistent. Diamond's findings will change how we think about and design public policy toward retirement saving and life-cycle labor supply."--Laurence J. Kotlikoff, Department of Economics, Boston University "This book is an outstanding contribution to our knowledge base about the role of annuities in assisting households to finance their retirements. It's the first book I've seen to cover these topics."--Laurence J. Kotlikoff, Department of Economics, Boston University "I warmly welcome the publication of this book. The authors provide both a good descriptive view of the US private annuity system and a thorough analysis of the factors influencing the value individuals attach to annuity payout streams."--Alain Jousten, Department of Economics, Universite de LiegePlease note: "Universite de Liege" bears an accute accent over the final "e" in "Universite," and a grave accent over the first "e" in "Liege." "Well-written and thorough; this is high-quality research on an important public policy issue. The book collects the results of an impressive research agenda in one place."--William M. Gentry, Graduate School of Business, Columbia University "Life annuities can be extremely valuable and useful financial products. They can make retirement planning easier and more efficient. At the same time, they are not widely understood. The four authors of this book have produced the most authoritative and comprehensive examination of life annuities ever written. One can literally learn all there is to know about life annuities by reading this book. I recommend it to financial planners, academics, public policy makers, and anyone trying to understand theseimportant financial contracts. This book is a tour de force."--John B. Shoven, Charles R. Schwab Professor of Economics, Stanford UniversityPlease note: Endorser gives permission for us to use the last four sentences by themselves, beginning with "The four authors..."

Olivia S. Mitchell is IFEBP Professor of Insurance and Risk Management in the Wharton School at the University of Pennsylvania.