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The Role of Commitment in Dynamic Contracts : Evidence from Life Insurance
Hendel, Igal - 2000
commit to a contract. The main issue is how contracts are designed to deal with classification risk. We present a model that … captures the main features of this industry. The data is especially suited for a test of the theory since it includes … the theory. All types of contracts involve front-loading. This generates a partial lock-in of consumers. Contracts that …
Persistent link: https://www.econbiz.de/10012471306
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How Does Life Settlement Affect the Primary Life Insurance Market?
Fang, Hanming - 2010
We study the effect of the life settlement market on the structure of long term contracts offered by the primary market for life insurance, as well as the effect on consumer welfare, using a dynamic model of life insurance with one sided commitment and bequest-driven lapsation. We show that the...
Persistent link: https://www.econbiz.de/10012462894
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Regression Discontinuity Designs with an Endogenous Forcing Variable and an Application to Contracting in Health Care
Bajari, Patrick - 2011
Regression discontinuity designs (RDDs) are a popular method to estimate treatment effects. However, RDDs may fail to yield consistent estimates if the forcing variable can be manipulated by the agent. In this paper, we examine one interesting set of economic models with such a feature....
Persistent link: https://www.econbiz.de/10012461014
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Traumatic Financial Experiences and Persistent Changes in Financial Behavior : Evidence from the Freedman's Savings Bank
Arthi, Vellore; Richardson, Gary; Van Orden, Mark - National Bureau of Economic Research - 2024
The failure of the Freedman's Savings Bank (FSB), one of the only Black-serving banks in the early post-bellum South, was an economic catastrophe and one of the great episodes of racial exploitation in post-Emancipation history. It was also most Black Americans' first experience of banking. Can...
Persistent link: https://www.econbiz.de/10014576605
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Aggregate Lapsation Risk
Koijen, Ralph S. J.; Lee, Hae Kang; Nieuwerburgh, Stijn van - National Bureau of Economic Research - 2022
We study aggregate lapsation risk in the life insurance sector. Using the regulatory reporting of historical lapse rates by life insurers, we empirically document the counter-cyclicality of lapsation behavior. We construct two lapsation risk factors that explain a large fraction of the common...
Persistent link: https://www.econbiz.de/10013334405
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Two Generalizations of a Deposit-Refund System
Fullerton, Don - 2000
This paper suggests two generalizations of the deposit-refund idea. In the first, we apply the idea not just to solid waste materials, but to any waste from production or consumption including wastes that may be solid, gaseous, or liquid. Using a simple general equilibrium model, we derive the...
Persistent link: https://www.econbiz.de/10012471271
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Rational Illiquidity and Consumption : Theory and Evidence from Income Tax Withholding and Refunds
Gelman, Michael - 2019
linkage in the context of income tax withholding and refunds. A theory of rational cash management with income uncertainty … refunds as if they valued liquidity, yet do not act to increase liquidity by reducing their income tax withholding. The theory …
Persistent link: https://www.econbiz.de/10012479708
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Rebate Rules in Threshold Public Good Provision
Spencer, Michael A. - 2008
This paper considers how six alternative rebate rules affect voluntary contributions in a threshold public-good experiment. The rules differ by (1) whether an individual can receive a proportional rebate of excess contributions, a winner-takes-all of any excess contributions, or a full rebate of...
Persistent link: https://www.econbiz.de/10012464089
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International Health Economics
Egan, Mark - 2013
Perhaps because health care is a local service sector, health economists have paid little attention to international linkages between domestic health care economies. However, the growth in domestic health care sectors is often attributed to medical innovations whose returns are earned worldwide....
Persistent link: https://www.econbiz.de/10012459381
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Don’t Take Their Word For It : The Misclassification of Bond Mutual Funds
Chen, Huaizhi - 2019
We provide evidence that mutual fund managers misclassify their holdings, and that these misclassifications have a real and significant impact on investor capital flows. In particular, we provide the first systematic study of bond funds' reported asset profiles to Morningstar against their...
Persistent link: https://www.econbiz.de/10012480366