"Deferred annuities with gender-neutral pricing: Benefitting most women without adversely affecting too many men" (with S.-H. P. Lau), November 2023. R&R at Journal of Economic Dynamics and Control. --Download: da_gn.pdf --Summary: The trend of the political quest for gender equality has led to the banning of using gender information in pricing annuities, resulting in a loss of market efficiency. This paper proposes a potential solution to solve this problem by offering a specific kind of deferred annuities.
“Uniqueness of equilibrium when the annuity payout level and annuitization choices are mutually dependent” (with S.-H. P. Lau and Q. Zhang), June 2023. R&R at Insurance: Mathematics and Economics. --Download:ueap.pdf --Summary: In the annuity insurance market with information asymmetry on risk types, it is generally difficult to prove the uniqueness of the equilibrium because of the mutual dependence between annuitization choices and the annuity price. This paper proves that the equilibrium annuity price is unique, provided that a sufficient condition on the distribution of risk types holds.
“Banning gender-based pricing in a mandatory annuity program with partial waiver may unintentionally lead to advantageous selection”(with S.-H. P. Lau and Q. Zhang), November 2023. Under review. --Download: mpa_gn.pdf --Summary: This paper evaluates the capability of mandatory purchase to avoid adverse selection. In contrast to the conventional wisdom, it is shown that the adverse selection is not eliminated in a mandatory public annuity program with partial waiver.
Selected works in Progress
"Does allowing intra-household transfer in defined-contribution pension schemes help elderly female retirees?"
"Refundable annuities help poor retirees" (with S.-H. P. Lau and Q. Zhang)
"How do households hedge against the environmental regulation risk?: Evidence from China" (with X. Chen and Y. Zhang)