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individual who buys a life insurance contract early in life is often uncertain about the future financial needs of his or her … bequest needs; but since bequest motives are typically unverifiable, a contract directly insuring these needs is not feasible …
Persistent link: https://www.econbiz.de/10003805992
Purchasing life insurance is for the welfare of young children, par-ticularly preteens, who are liquidity constrained. In this paper, we present a life cycle model of life insurance that takes into account the ages of these young beneciaries. We show that, as the child ages, the need for...
Persistent link: https://www.econbiz.de/10011398104
In long-term private health insurance contracts, aging provisions are used to flatten premium profiles. An individual would like to change insurers if she perceives a low service quality. The first-best optimum is characterized by provision transfers which are higher for high risks and may be...
Persistent link: https://www.econbiz.de/10011514187
literature that, when there is (only) risk type uncertainty, the optimal GR contract with renewal price set at the actuarially … renewal price. This results in incomplete insurance against re-classification risk. Although a first best efficient contract …
Persistent link: https://www.econbiz.de/10011864322
to STAR1). We then perform an unconditional and conditional portfolio performance evaluation. In both cases the evidence …-Rating System ; CAPM ; conditional and unconditional portfolio performance evaluation …
Persistent link: https://www.econbiz.de/10003817961
Empirical evidence that migrants send home more remittances after disasters raises the question of whether remittances can be used to self-insure, substituting for both formal and informal insurance. We investigate this question using a unique data set on the usage patterns of financial services...
Persistent link: https://www.econbiz.de/10003983213
High correlations between risks can increase required insurer capital and/orreduce the availability of insurance. For such insurance lines, securitizationis rapidly emerging as an alternative form of risk transfer. The ultimatesuccess of securitization in replacing or complementing traditional...
Persistent link: https://www.econbiz.de/10011400246
that hardly explains the many features of an insurance contract. We extend this setup to include the situation that the … costlessly observable, then it should be included in the contract to improve the risk sharing-incentive trade-off under moral … resulting incompleteness of the contract opens the door to controversies and disputes that may lead to judicial procedures. We …
Persistent link: https://www.econbiz.de/10011723471
This paper provides the proofs to the analysis of a continuous time matching model with saving in Bayer and Wälde (2010a). The paper proves the results on consumption growth, provides an existence proof for optimal consumption and a detailed derivation of the Fokker-Planck equations. --...
Persistent link: https://www.econbiz.de/10003965877
Should principals explain and justify their evaluations? Suppose the principal's evaluation is private information, but … space is restricted, but the message is costless. I show that the principal justifies her evaluation to the agent if the … evaluation indicates bad performance. The justification assures the agent that the principal has not distorted the evaluation …
Persistent link: https://www.econbiz.de/10010361447