The Family as an Incomplete Annuities Market

@article{Kotlikoff1981TheFA,
  title={The Family as an Incomplete Annuities Market},
  author={Laurence J. Kotlikoff and Avia Spivak},
  journal={Journal of Political Economy},
  year={1981},
  volume={89},
  pages={372 - 391}
}
Families can self-insure against uncertain dates of death through implicit or explicit agreements with respect to consumption and interfamily transfers. Interfamily transfers need have nothing to do with altruistic feelings; they may simply reflect risk-sharing behavior of completely selfish family members. Although family annuity markets are incomplete, even small families can substitute by more than 70 percent for perfect market annuities. Given adverse selection and transaction costs, family… Expand
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