This paper extends previous resuls on optimal insurance trading in the presence of a stock market that allows … with references to the role of genetic testing in insurance markets. We find a novel and surprising result under symmetric … information: agents may optimally prefer to purchase full insurance despite the presence of unfairly priced insurance contracts …

elementary, everyday introduction to the concepts of risk and insurance. Conceptually, risk has two dimensions: a potential loss …, and the chance of that loss being realized. People can, however, transfer risk to insurance companies against the payment … technologies, threats of terrorism), risk can only be assessed through imagination. Not surprisingly, insurance companies demand …

markets greatly enhance the risk sharing capacity of insurance markets and the scope of risks that are insurable because … provide insurance capital through stock markets.We show that aggregate risk enters private insurance as positive loading on … insurance prices and despite that agents will buy full coverage. The loading is determined by the risk premium of investors in …

-level analyses suggest that well-functioning local banks exert large effects on aggregate productivity by reallocating resources …

aspect of financial intermediation: firms turn to banks as a source of investment mainly because banks are good at helping … them through times of financial distress. The debt restructuring service that banks may offer, however, is costly … firms or banks also issue equity in our model is simply to avoid bankruptcy. Banks have the additional motive that they need …

signaling into general equilibrium. By recasting the Rothschild-Stiglitz model of insurance in this framework, they find that a …

This paper looks at the dynamic management of risk in an economy with discrete time consumption and endowments and … continuous trading. I study how agents in such an economy deal with all the risk in the economy and attain their Pareto optimal … allocations by trading in a few natural securities: private insurance contracts and a common set of derivatives on the aggregate …

This paper extends existing insurance results on the type of insurance contracts needed for insurance market efficiency … actuarial properties of the underlying risk process. The paper further extends insurability to include correlated and … standard insurance contracts (together with aggregate assets) suffice to complete markets or one needs to introduce such assets …

. However, when risk profiles are endogenously selected conglomeration may extend the reach of the deposit insurance safety net … institution. The conglomerate’s risk-taking incentives depend upon the level of market discipline it faces, which in turn is … integrated financial conglomerates, and for financial conglomerates that are structured as holding companies. For a given risk …

observed by Allen and Gale(1997), in an overlapping generation model, banks have a role as intergenerational connectors as they … important role by providing the right incentives for banks to smooth intertemporal consumption whereas market discipline …