26 lines
693 B
Markdown
26 lines
693 B
Markdown
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<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-5-chapter-03 -->
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# Tontines
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## Definition
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A system of raising government revenue through life annuities where survivors
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inherit the annuities of those who die, continuing until the last survivor
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receives all remaining payments, named after their inventor Lorenzo Tonti.
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## Source Chapter
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Book V, Chapter 3
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## Context
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Smith explains tontines as a method of granting annuities that raises more
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money than separate life annuities because people overestimate their chances
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of long survival and are willing to pay premiums for survivorship rights.
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## Economic Domain
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Regulation
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---
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