Valuing Medieval Annuities: Were Corrodies Underpriced?

ICMA Centre Discussion Papers in Finance No. DP 2007-15

33 Pages Posted: 20 Nov 2007

See all articles by Adrian R. Bell

Adrian R. Bell

University of Reading - ICMA Centre

Charles Sutcliffe

University of Reading - ICMA Centre

Date Written: April 2008

Abstract

Medieval bishops condemned and restricted the sale of corrodies (a type of annuity), partly on the grounds of their perceived unprofitability. The available data on the profitability of corrodies is limited and little analysed, and the episcopal condemnation of corrodies has been adopted by modern researchers. After recognising the difficulties, this paper applies an annuity pricing model to study corrody pricing. Given various assumptions, contrary to the established view, it is shown that the sale of corrodies was profitable for institutions. Finally, some reasons are considered for the negative attitude of medieval bishops towards the sale of corrodies.

Keywords: corrodies, monasteries, annuities, pensions, medieval bishops

JEL Classification: G23, N00

Suggested Citation

Bell, Adrian R. and Sutcliffe, Charles M., Valuing Medieval Annuities: Were Corrodies Underpriced? (April 2008). ICMA Centre Discussion Papers in Finance No. DP 2007-15. Available at SSRN: https://ssrn.com/abstract=1030857 or http://dx.doi.org/10.2139/ssrn.1030857

Adrian R. Bell

University of Reading - ICMA Centre ( email )

Whiteknights Park
P.O. Box 242
Reading RG6 6BA
United Kingdom

Charles M. Sutcliffe (Contact Author)

University of Reading - ICMA Centre ( email )

Whiteknights Park
P.O. Box 242
Reading RG6 6BA
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
125
Abstract Views
869
rank
234,954
PlumX Metrics