This paper develops a positive framework for studying the deductibility of premiums paid to captive insurers as business expenses in German and American tax law. A systematic analysis of the legal rules and judicial Standards that have evolved during many years of corporate litigation and...

The superior risk-bearing ability of commercial insurers is limited. Their comparative advantage depends on the calculability of property-liability loss distributions. Insurance contracts have their own transaction costs and these may outweigh the benefits of the commercial risk transfer. The...

This paper focuses on the costs of limited liability in the theory of the firm. Insurance may discourage the opportunistic externalization of those costs in a way that enhances optimal risk allocation for corporate stakeholders. The paper hypothesizes that insurance will enable the firm to...

Positive contracting costs (imperfect marketability), the impos-sibility of complete spanning of State spaces and other market imperfections explain the relevance of the corporate buying of property and liability insurance. For a corporation with diffuse ownership, risk aversion is irrelevant,...

The superior risk-bearing ability of commercial insurers is limited. Their comparative advantage depends on the calculability of property-liability loss distributions. Insurance contracts have their own transaction costs and these may outweigh the benefits of the commercial risk transfer. The...

This paper develops a positive framework for studying the deductibility of premiums paid to captive insurers as business expenses in German and American tax law. A systematic analysis of the legal rules and judicial Standards that have evolved during many years of corporate litigation and...

This paper develops a positive framework for studying the deductibility of premiums paid to captive insurers as business expenses in German and American tax law. A systematic analysis of the legal rules and judicial Standards that have evolved during many years of corporate litigation and...

The superior risk-bearing ability of commercial insurers is limited. Their comparative advantage depends on the calculability of property-liability loss distributions. Insurance contracts have their own transaction costs and these may outweigh the benefits of the commercial risk transfer. The...