Economic Growth and Longevity Risk with Adverse Selection

We study a closed economy featuring heterogeneous agents and exhibiting endogenous economic growth due to interfirm external effects. Individual agents differ in terms of their mortality profile. At birth, nature assigns a health status to each agent. Health type is private information and annuity firms can only observe an agent’s age. In the presence of longevity risk, agents want to annuitize their wealth conform the classic result by Yaari (1965). In the first-best case with perfect annuities, the market would feature a separating equilibrium (SE) in which each health type obtains an actuarially fair perfect insurance. In the SE all agents are savers throughout their lives. The informational asymmetry precludes the attainment of the first-best equilibrium, however, as healthy individuals have a strong incentive to misrepresent their type by claiming to be unhealthy. Using the equilibrium concept of Pauly (1974) and Abel (1986), we prove the existence of a second-best pooling equilibrium (PE) in which individuals of all types annuitize at a common pooling rate. As the unhealthy get close to their maximum attainable age, the pooling rate prompts such individuals to become net borrowers. But borrowing would reveal their health status, so the best the unhealthy can do is to impose a borrowing constraint on themselves during their autumn years. Using a plausibly calibrated version of the model we find that the growth- and welfare effects of PE versus SE are rather small, whilst those of PE versus no annuities at all (NAE) are rather large. An imperfect insurance is better than no insurance at all, both at the microeconomic and at the macroeconomic level.annuity markets, adverse selection, endogenous growth, overlapping generations, demography

Testing for inherited thrombophilia does not reduce the recurrence of venous thrombosis\ud

Background: Inherited thrombophilia is only weakly associated with recurrence in patients with a first venous thrombosis (VT). In spite of this, thrombophilia testing is often performed in these patients. Positive results may influence patient management such as prolonged anticoagulant treatment or intensified prophylaxis in high-risk situations. Objective: To investigate whether thrombophilia testing reduces the risk of recurrent VT by virtue of these management alterations. Methods: From a large case–control study of patients (MEGA study), aged 18–70 years, with a first VT between 1999 and 2004, we selected 197 patients who had had a recurrence during follow-up. We compared the incidence of thrombophilia testing to that of a control cohort of 324 patients. We calculated the odds ratio (OR) for recurrent thrombosis in tested vs. non-tested patients. Only patients who were tested before recurrence were regarded as tested. All first and recurrent thrombotic events were objectively confirmed. Results: Thrombophilia tests were performed in 35% of cases and in 30% of controls. The OR for recurrence was 1.2 [95% confidence interval (CI) 0.9–1.8] for tested vs. non-tested patients. After correction for age, sex, family history, geographic region, presence of clinical risk factors, and year of first VT, the OR remained unchanged. Discussion: Thrombophilia testing in patients with a first VT does not reduce the incidence of recurrence in clinical practice.\u

Electronic optics in graphene in the semiclassical approximation

We study above-barrier scattering of Dirac electrons by a smooth electrostatic potential combined with a coordinate-dependent mass in graphene. We assume that the potential and mass are sufficiently smooth, so that we can define a small dimensionless semiclassical parameter $h \ll 1$. This electronic optics setup naturally leads to focusing and the formation of caustics, which are singularities in the density of trajectories. We construct a semiclassical approximation for the wavefunction in all points, placing particular emphasis on the region near the caustic, where the maximum of the intensity lies. Because of the matrix character of the Dirac equation, this wavefunction contains a nontrivial semiclassical phase, which is absent for a scalar wave equation and which influences the focusing. We carefully discuss the three steps in our semiclassical approach: the adiabatic reduction of the matrix equation to an effective scalar equation, the construction of the wavefunction using the Maslov canonical operator and the application of the uniform approximation to the integral expression for the wavefunction in the vicinity of a caustic. We consider several numerical examples and show that our semiclassical results are in very good agreement with the results of tight-binding calculations. In particular, we show that the semiclassical phase can have a pronounced effect on the position of the focus and its intensity.Comment: 103 pages, 11 figure

The Tragedy of Annuitization

We construct a tractable discrete-time overlapping generations model of a closed economy and use it to study government redistribution of accidental bequests and private annuities in general equilibrium. Individuals face longevity risk as there is a positive probability of passing away before the retirement period. We find non-pathological cases where it is better for long-run welfare to waste accidental bequests than to give them to the elderly. Next we study the introduction of a perfectly competitive life insurance market offering actuarially fair annuities. There exists a tragedy of annuitization: although full annuitization of assets is privately optimal it is not socially beneficial due to adverse general equilibrium repercussions.longevity risk, risk sharing, overlapping generations, intergenerational transfers, annuity markets

Optical investigation of thermoelectric topological crystalline insulator Pb0.77_{0.77}Sn0.23_{0.23}Se

Pb$_{0.77}$Sn$_{0.23}$Se is a novel alloy of two promising thermoelectric materials PbSe and SnSe that exhibits a temperature dependent band inversion below 300 K. Recent work has shown that this band inversion also coincides with a trivial to nontrivial topological phase transition. To understand how the properties critical to thermoelectric efficiency are affected by the band inversion, we measured the broadband optical response of Pb$_{0.77}$Sn$_{0.23}$Se as a function of temperature. We find clear optical evidence of the band inversion at $160\pm15$ K, and use the extended Drude model to accurately determine a $T^{3/2}$ dependence of the bulk carrier lifetime, associated with electron-acoustic phonon scattering. Due to the high bulk carrier doping level, no discriminating signatures of the topological surface states are found, although their presence cannot be excluded from our data.Comment: 11 pages, 6 figure

Raman study of the phonon symmetries in BiFeO3_3 single crystals

In bismuth ferrite (BiFeO3), antiferromagnetic and ferroelectric order coexist at room temperature, making it of particular interest for studying magnetoelectric coupling. The mutual control of magnetic and electric properties is very useful for a wide variety of applications. This has led to an enormous amount of research into the properties of BiFeO$_3$. Nonetheless, one of the most fundamental aspects of this material, namely the symmetries of the lattice vibrations, remains controversial.We present a comprehensive Raman study of BiFeO$_3$ single crystals with the approach of monitoring the Raman spectra while rotating the polarization direction of the excitation laser. Our method results in unambiguous assignment of the phonon symmetries and explains the origin of the controversy in the literature. Furthermore, it provides access to the Raman tensor elements enabling direct comparison with theoretical calculations. Hence, this allows the study of symmetry breaking and coupling mechanisms in a wide range of complex materials and may lead to a noninvasive, all-optical method to determine the orientation and magnitude of the ferroelectric polarization.Comment: 5 pages, 4 figures, 1 tabl