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Advantageous Selection Without Moral Hazard (with an Application to Life Care Annuities)
De Donder, Philippe; Leroux, M.‐L; Salanié, François - 2022
Advantageous (or propitious) selection occurs when an increase in the premium of an insurance contract induces high … face two mutually exclusive risks that are bundled together in a single insurance contract. We exemplify this last case … to provide an example of a contract facing advantageous selection …
Persistent link: https://www.econbiz.de/10014083046
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Tenant Riskiness, Contract Length, and the Term Structure of Commercial Leases
Brueckner, Jan K.; Rosenthal, Stuart S. - 2023
contracts. Theory shows that the possibility of default on a long-term lease generates a risk/lease-length connection. The …
Persistent link: https://www.econbiz.de/10014263217
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Utilities Included : Split Incentives in Commercial Electricity Contracts
Jessoe, Katrina - 2019
This paper quantifies a tenant-side "split incentives" problem that exists when the largest commercial sector customers … previous split incentives papers, and is robust when exposed to several opportunities to fail. The electricity reduction in …
Persistent link: https://www.econbiz.de/10012866313
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Stochastic Contracts and Subjective Evaluations
Lang, Matthias - 2021
Subjective evaluations are widely used, but call for different contracts from traditional moral-hazard settings. Previous literature shows that contracts require payments to third parties, which real-world contracts rarely use. I show that the implicit assumption of deterministic contracts makes...
Persistent link: https://www.econbiz.de/10013311715
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Inefficiency in Social Security Trust Funds Forecasts
Lahiri, Kajal; Zhang, Junyan; Zhao, Yongchen - 2021
We examine forecast accuracy and efficiency of the Social Security Administration’s projections for cost rate, trust fund balance, trust fund ratio made during 1980-2020 with horizons up to 95 years. We find that the reported deterioration in the accuracy of the forecasts during 2010’s has...
Persistent link: https://www.econbiz.de/10013313449
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Intergenerational Actuarial Fairness When Longevity Increases : Amending the Retirement Age
Bravo, Jorge Miguel; Ayuso, Mercedes; Holzmann, Robert; … - 2021
expectancy uses a Bayesian Model Ensemble approach to stochastic mortality modelling to generate forecasts of intergenerationally …
Persistent link: https://www.econbiz.de/10013314670
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Natural Disasters, Moral Hazard, and Special Interests in Congress
Kaplan, Carol - 2019
We exploit the precise timing of natural disasters to provide empirical evidence on the connection between electoral accountability and politicians’ support for special interests. We show that, in the immediate aftermath of a disaster, the evening news substantially reduce their coverage of...
Persistent link: https://www.econbiz.de/10012892175
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Deposit Insurance, Moral Hazard and Bank Risk
Karas, Alexei; Pyle, William; Schoors, Koen J. L. - 2021
Using evidence from Russia, we explore the effect of the introduction of deposit insurance on bank risk. Drawing on variation in the ratio of firm deposits to total household and firm deposits before the announcement of deposit insurance, so as to capture the magnitude of the decrease in market...
Persistent link: https://www.econbiz.de/10013249648
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Competitive Procurement with Ex Post Moral Hazard
Chakraborty, Indranil; Khalil, Fahad; Lawarree, Jacques - 2021
auction to guard against firms bidding low to win the contract and then cutting back on effort. While competition helps reduce …, limiting the number of participants may be optimal. Alternatively, the same incentives can be optimally provided using …
Persistent link: https://www.econbiz.de/10013249652
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When Pro-Poor Microcredit Institutions Favor Richer Borrowers - A Moral Hazard Story
Biancini, Sara; Venet, Baptiste; Ettinger, David - 2021
institutions have to build incentives for MFIs, creating a trade off between the quality of the funded projects and the attribution …
Persistent link: https://www.econbiz.de/10013245624