IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/ak6gu.html
   My bibliography  Save this paper

More on the Origin of Financial Economics: Early Contributions to Joint Life Annuity Valuation

Author

Listed:
  • Poitras, Geoffrey

Abstract

The origin of modern financial economics can be traced to early discounted expected value solutions for the price of life annuities. In contrast to the single life annuity valuations attributed to de Witt and Halley, the computational complexity of joint life annuity valuation posed difficulties. Following a brief review of various joint life annuity specifications, a history of joint life annuity issuance and valuation in northern Europe from the 13th to the mid-18th century is provided. With this background, the 1671 correspondence from de Witt to Hudde on possible methods for valuing joint life annuities is detailed. These methods are contrasted with the geometric method described in Halley (1693); providing impetus for examination of the analytical approximations developed by de Moivre and Simpson.

Suggested Citation

  • Poitras, Geoffrey, 2024. "More on the Origin of Financial Economics: Early Contributions to Joint Life Annuity Valuation," SocArXiv ak6gu, Center for Open Science.
    • Handle: RePEc:osf:socarx:ak6gu
    DOI: 10.31219/osf.io/ak6gu
    as

    Download full text from publisher

    File URL: https://osf.io/download/66ccd6ee729a8e414b181291/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/ak6gu?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Blaug,Mark, 1997. "Economic Theory in Retrospect," Cambridge Books, Cambridge University Press, number 9780521577014, October.
    2. Gelderblom, Oscar & Jonker, Joost, 2011. "Public Finance and Economic Growth: The Case of Holland in the Seventeenth Century," The Journal of Economic History, Cambridge University Press, vol. 71(1), pages 1-39, March.
    3. Velde, François R. & Weir, David R., 1992. "The Financial Market and Government Debt Policy in France, 1746–1793," The Journal of Economic History, Cambridge University Press, vol. 52(1), pages 1-39, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kim Oosterlinck & Loredana Ureche-Rangau & Jacques-Marie Vaslin, 2013. "Waterloo: a Godsend for French Public Finances?," Working Papers 0041, European Historical Economics Society (EHES).
    2. Leonor Freire Costa & Susana Münch Miranda, 2023. "Reputational recovery under political instability: Public debt in Portugal, 1641–83," Economic History Review, Economic History Society, vol. 76(3), pages 871-891, August.
    3. Tomasz Grodzicki & Mateusz Jankiewicz, 2020. "Forecasting the Level of Unemployment, Inflation and Wages: The Case of Sweden," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 400-409.
    4. Stephen Quinn & William Roberds, 2016. "Death of a Reserve Currency," International Journal of Central Banking, International Journal of Central Banking, vol. 12(4), pages 63-103, December.
    5. Su, Huei-Chun & Colander, David, 2021. "The Economist As Scientist, Engineer, Or Plumber?," Journal of the History of Economic Thought, Cambridge University Press, vol. 43(2), pages 297-312, June.
    6. D'Maris Coffman & Judy Z. Stephenson & Nathan Sussman, 2022. "Financing the rebuilding of the City of London after the Great Fire of 1666," Economic History Review, Economic History Society, vol. 75(4), pages 1120-1150, November.
    7. Daron Acemoglu & James A. Robinson, 2015. "The Rise and Decline of General Laws of Capitalism," Journal of Economic Perspectives, American Economic Association, vol. 29(1), pages 3-28, Winter.
    8. Kim Oosterlinck & Loredana Ureche-Rangau & Jacques-Marie Vaslin, 2014. "Baring, Wellington and the resurrection of French public finances following Waterloo," Post-Print CEB, ULB -- Universite Libre de Bruxelles, vol. 74(4), pages 1072-1102, November.
    9. Guillaume Daudin, 2003. "Do Frontiers give of do frontiers take ? The case of intercontinental trade in France at the end of the Ancien Régime," Documents de Travail de l'OFCE 2003-03, Observatoire Francais des Conjonctures Economiques (OFCE).
    10. Daudin, Guillaume, 2004. "Profitability of Slave and Long-Distance Trading in Context: The Case of Eighteenth-Century France," The Journal of Economic History, Cambridge University Press, vol. 64(1), pages 144-171, March.
    11. Khalid Iqbal, 2017. "Welfare Economics: A Story of Existence," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 20(64), pages 75-83, June.
    12. van Bavel, Bas, 2016. "The Invisible Hand?: How Market Economies have Emerged and Declined Since AD 500," OUP Catalogue, Oxford University Press, number 9780199608133.
    13. Laurie Bréban & André Lapidus, 2019. "Adam Smith on lotteries: an interpretation and formal restatement," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 26(1), pages 157-197, January.
    14. Thomas E. Lambert, 2020. "Monopoly capital and innovation: an exploratory assessment of R&D effectiveness," International Review of Applied Economics, Taylor & Francis Journals, vol. 34(1), pages 36-49, January.
    15. Andrew Lister, 2017. "Markets, desert, and reciprocity," Politics, Philosophy & Economics, , vol. 16(1), pages 47-69, February.
    16. Nicolò Bellanca & Stefani Innocenti, 2013. "Not-dividing the Indivisible: Formation of the Sacred and Antagonistic Conflicts," Working Papers - Economics wp2013_10.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    17. Klára Čermáková & Pavel Procházka & Lucie Kureková & Jiří Rotschedl, . "Do Institutions Influence Economic Growth?," Prague Economic Papers, Prague University of Economics and Business, vol. 0.
    18. Michael T. Rauh, 2007. "Incentives, Solidarity, and the Division of Labor," Working Papers 2007-15, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    19. David Simpson, 2013. "The Rediscovery of Classical Economics," Books, Edward Elgar Publishing, number 15080.
    20. Anders Liljenberg, 2005. "The Austrian Tertius Gaudens: A Revisit of Competition Theory in Light of Georg Simmel," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 18(2), pages 195-218, June.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:socarx:ak6gu. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://arabixiv.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.