Autor: Gabrielli Maria Florencia*, Aryal Gaurab**, Fajnzilber Eduardo***, Willington Manuel****
Institución: (*)Universidad del Desarrollo, Chile, (**)Boston University, (***)IADB, (****)UDD
Año: 2025
JEL: D14, D44, D91, C57, J26, L13
Resumen:
We propose and estimate a model of demand and supply of annuities. To this end, we use rich data from Chile, where annuities are bought and sold in a private market via a two-stage process: rst-price auctions followed by bargaining. We model rms with private information about costs and retirees with di erent mortalities and preferences for bequests and rms' risk ratings. We nd substantial costs and preference heterogeneity, and because there are many rms, the market performs well. Counterfactuals show that simplifying the current mechanism with English auctions and\shutting down" risk ratings increase pensions, but only for high savers.