Microeconomic theory predicts that under certain regularity conditions higher idiosyncratic risk increases the … and car insurance using data from the UK. The main empirical results are: - higher labor income risk induces a higher … demand for car insurance. - the effects of increases in labor income risk after 1979 seem to be more than offset by a more …

because agents can time-diversify their risk. Market insurance implies welfare gains of around .6% in terms of non …-durable consumption. Introducing labor income risk into the model does not necessarily increase the importance of market insurance if the …We analyze dynamic interactions between market insurance, the stock of insurable assets and liquid wealth accumulation …

insurance. For this we specify and estimate dynamic models for health insurance decisions and health care utilization. Estimates …

We document a large and persistent anomaly in the UK car insurance market over the period 2012-13: insurance companies … charged a higher premium for third-party (liability) insurance than comprehensive insurance (which includes third … that consumers are too confused or too poorly informed to arbitrage and that sellers of car insurance do not implement the …

We characterize how public insurance schemes are constrained by hidden financial transactions. When non …-exclusive private insurance entails increasing unit transaction costs, public transfers are only partly offset by hidden private … of insurance on unobservable effort and saving choices as well as the relative cost of public and private insurance …

with effort-determined probability. We show that if insurance against a negative shock is sufficiently incomplete, then … standard functional form restrictions ensure that individual objective functions are optimized by an effort and insurance … combination that is unique and satisfies first- and second-order conditions. Modeling insurance incompleteness in terms of costly …