Home equity insurance policies, policies insuring homeowners against declines in the price of their homes, would bear … some resemblance both to ordinary insurance and to financial hedging vehicles. A menu of choices for the design of such … insurance company in effect serves as a retailer to homeowners of short positions in real estate futures markets or of put …

intermediaries. Insurance can be provided because in an equilibrium contract an up-front payment effectively locks in the agent with … given period, after having observed her income, the agent can walk away from the contract, while the intermediary cannot, i … autarky, but also partial and full insurance can obtain, depending on the relative patience of agents and financial …

State guaranty funds are quasi-governmental agencies that provide insurance to policyholders against the risk of … insurance company failure. But insurance provided by guaranty funds, like all insurance, creates moral hazard problems … insurance companies to borrow money (i.e., from policyholders). Moreover, the existence of guaranty fund insurance enables …

We assemble and analyze a new data set of homeowner insurance claims from 28 independently operated country … subsidiaries of a multinational insurance company. A fundamental feature of the data is that such claims are often disputed, and … lead to rejections or lower payments. We propose a new model of insurance, in which consumers can make invalid claims and …

This paper tests restrictions implied by the canonical theory of insurance under asymmetric information using ideal … life insurance. We report several findings which are hard to reconcile with the canonical theory. First, we find a striking … find that risk is negatively correlated with the quantity of insurance purchased although the theory predicts a positive …

to some extent on the ground that it serves as social insurance against uncertainties in labor income. They assume that … private insurance is unavailable. primarily because of moral hazard, and demonstrate that some taxation is efficient because … the benefits of mitigating risk exceed incentive costs. This note suggests that private insurance should be considered …

This paper examines the existence and nature of competitive equilibrium with moral hazard. The more insurance an … individual has, the less care will he take. Consequently, insurance firms attempt to restrict their clients' aggregate insurance … purchases. If individuals' aggregate insurance purchases are observable, each firm will ration the amount of insurance its …

bearing are examined in a model in which private insurance is taken into account. It is demonstrated that government relief is … inefficient, even when private insurance is subject to moral hazard, because relief shields individuals from some of the effects …

occurs or it does not. The analysis focuses on the relationship between the insurance premium paid and the insurance benefits …-prevention effort, are extremely well-behaved, the indifference curves and feasibility set (the set of insurance contracts which at … insurance policies provided. Part I of this paper establishes these results, while Part II discusses sane of their implications …