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Property Insurance, Portfolio Selection and their Interdependence

Chang, Fwu-Ranq - CESifo - 2008

This paper studies the interdependence between property insurance and portfolio selection. The insurance premium of property loss is shown to play the role of subsistence consumption in the analysis. Then, “security” becomes a necessity good and an increase in any insurance parameter would...

Persistent link: https://www.econbiz.de/10005765954

Measuring Alpha in the Fund Management Industry: Do Female Managers Perform Better?

Babalos, Vassilis; Caporale, Guglielmo Maria; … - CESifo - 2013

This paper examines the performance of 358 European diversified equity mutual funds controlling for gender differences. Fund performance is evaluated against funds’ designated market indices and representative style portfolios. Consistently with previous studies, no significant differences in...

Persistent link: https://www.econbiz.de/10010667412

Asset Allocation and Monetary Policy: Evidence from the Eurozone

Hau, Harald; Lai, Sandy - CESifo - 2014

The eurozone has a single short-term nominal interest rate, but monetary policy conditions measured by real short-term interest rates varied substantially across countries in the period 2003-2010. We use this cross-country variation in the (local) tightness of monetary policy to examine its...

Persistent link: https://www.econbiz.de/10010948820

Pension Benefit Insurance and Pension Plan Portfolio Choice

Crossley, Thomas; Jametti, Mario - CESifo - 2008

Pension benefit guarantee policies have been introduced in several countries to protect private pension plan members from the loss of income that would occur if a plan was underfunded when the sponsoring firm terminates a plan. Most of these public insurance schemes face financial difficulty and...

Persistent link: https://www.econbiz.de/10005094172

Optimal Compatibility in Systems Markets

Kim, Sang-Hyun; Choi, Jay Pil - CESifo - 2014

We investigate private and social incentives for standardization to ensure market-wide system compatibility in a two … full compatibility because it offers more variety that confers a better match with their ideal specifications. However …, firms are likely to choose the minimal compatibility to maximize product differentiation and soften competition. This is in …

Persistent link: https://www.econbiz.de/10010948871

A Game-Theoretic Foundation for the Wilson Equilibrium in Competitive Insurance Markets with Adverse Selection

Mimra, Wanda; Wambach, Achim - CESifo - 2011

We extend the seminal Rothschild and Stiglitz (1976) model on competitive insurance markets with asymmetric information in the spirit of Wilson (1977)’s ‘anticipatory equilibrium’ by introducing an additional stage in which initial contracts can be withdrawn after observation of...

Persistent link: https://www.econbiz.de/10008914286

Heterogeneous Beliefs and the Demand for D&O Insurance by Listed Companies

Egger, Peter; Radulescu, Doina Maria; Rees, Ray - CESifo - 2014

This paper introduces a new rationale for the existence of “Directors’ and Officers’” (D&O) insurance. We use a model with volatile stock markets where shareholders design compensation schemes that incentivize managers to stimulate short-term increases in stock prices that do not...

Persistent link: https://www.econbiz.de/10010739342

Crowding Out of Long-Term Care Insurance: Evidence from European Expectations Data

Costa-i-Font, Joan; Courbage, Christophe - CESifo - 2014

Long-term care (LTC) is the largest insurable risk that old-age individuals face in most western societies. However, the demand for LTC insurance is still ostensibly small in comparison to the financial risk, which is reflected in the formation of expectations of insurance coverage. One...

Persistent link: https://www.econbiz.de/10010812493

The Economics of Insurance, its Borders with Finance and Implications for Systemic Regulation

Thimann, Christian - CESifo - 2015

Global financial regulators are currently reflecting on the nature of the insurance business. Specifically, they are trying to classify insurance into ‘traditional’ and ‘non-traditional’ activities, and to distinguish them from ‘non-insurance’ activities. Subsequently, they will seek...

Persistent link: https://www.econbiz.de/10011165510

The Nature of Risk Preferences: Evidence from Insurance Choices

Barseghyan, Levon; Molinari, Francesca; O'Donoghue, Ted; … - CESifo - 2012

We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates "standard" risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions - characterized by substantial overweighting of small...

Persistent link: https://www.econbiz.de/10010571178