Demand for insurance can be driven by high risk aversion or high risk. We show how to separately identify risk … preferences and risk types using only choices from menus of insurance plans. Our revealed preference approach does not rely on …

We use a large data set of deductible choices in auto insurance contracts to estimate the distribution of risk … for unobserved heterogeneity in both risk (probability of an accident) and risk aversion. Ex-post claim information … separately identifies the marginal distribution of risk, while the joint distribution of risk and risk aversion is identified by …