privately observable, idiosyncratic random events. The information structure precludes conventional insurance arrangements …. However, a financial institution -- perhaps best viewed as a savings bank -- can provide partial insurance by generating a …, resulting in a level of expected utility higher than that achievable in simple security markets. Insurance is incomplete because …

risk insurance, which is manifested in a reduced demand for lines of credit. We also find evidence of a “road show⠅

pushed AIG to the brink of bankruptcy. AIG used securities lending to transform insurance company assets into residential … solvency of the life insurance companies. AIG also sold insurance on multi-sector collateralized debt obligations, backed by …

the seemingly failure of the private insurance market to provide coverage for terrorism losses after the attack on … government provision of terrorism insurance. The paper argues that mostly unfettered insurance and capital markets are capable of …

This paper investigates the incentive effects of automobile insurance, compulsory insurance laws, and no … 1970-1998, a period in which many states adopted compulsory insurance regulations and/or no-fault laws. Using an … instrumental variables approach, we find evidence that automobile insurance has moral hazard costs, leading to an increase in …

This paper investigates the rationale for government intervention in the market for terrorism insurance, focusing on … rational terrorists. Government subsidies for terror insurance can discourage self-protection and limit the inefficiencies …

these changes should have affected the equilibrium prices of property-casualty insurance policies, and explores the extent … insurance policy and industry data on premiums earned. Although the predicted impact of the changes in the tax rules enacted in … longest-tail line of insurance, in 1987), it is small relative to the variability of the actual loss experience …

This paper analyzes the impact of rate regulation on the structure of insurance markets for private passenger … automobile insurance. The paper argues that states' restrictions on automobile insurers' rates of return will distort the …