fair price for low risk types provides full insurance against reclassification risk. We develop a model that includes … unpredictable (and unobservable) fluctuations in demand for life insurance as well as changes in risk type (observable) over … whose type turns out to be high risk but low demand renew more of their GR insurance than is efficient due to the attractive …

This paper studies empirically the relationship between competition and risk taking in banking markets. We exploit an … between competition and risk taking, which we measure by the non-performing loans and loss provision rates of the individual … banks. We find that more competition leads to more risk taking. We also examine the effects of bank competition on the …

People often fail to insure against catastrophes, even when insurance is subsidized. Even when insuring homes, many … homeowners still underinsure the full value of their assets. Some researchers have suggested using long-term insurance contracts … to reduce these insurance gaps. We examine insurance decisions in a computer-administered experiment that makes several …

We study the demand for actuarially fair Long Term Care (LTC hereafter) insurance in a setting where autonomous agents … themselves, while no agent wishes to buy complete insurance. We then show that the comparison of marginal utility of income (as … opposed to consumption) across health states depends on (i) whether agents do buy LTC insurance at equilibrium or not, (ii …

choose their portfolio risk, bank size, and capital holdings. Banks voluntarily hold equity when the buffer effect against … the risk of default outweighs the cost advantages of debt financing. In the optimum, banks with lower monitoring costs are … to make higher-risk portfolios more attractive. Accounting for banks’ interior capital choices can thus explain why …

financial risk-taking, and for the alleviating effect of self-insurance devices. …We study how background health risk affects financial risk-taking. We elicit financial risk-taking behavior of a … infections across time and space, we find that an increase in infections affecting background health risk translates into higher …

low display more tolerance towards risk in a subsequent incentivized lottery task. This effect is mainly driven by … individuals who more firmly believe that life outcomes are beyond their control. This interaction between risk preferences and …

This paper analyzes the effect of the removal of government guarantees on bank risk taking. We exploit the removal of …

risk include an additional stress component introduced by the recent Basel 2.5 regulation. Our optimization with the Basel … relatively low market volatility may have unintended consequences for banks' risk exposure. …

-2022, applying panel regressions and quantile analysis. We conclude that an increase in sovereign risk raises the share of domestic … risk for domestic investors have increased since the 2010 financial crisis. …