We study the welfare effects of offering choice over coverage levels—“vertical choice”—in regulated health insurance …. We show that vertical choice is efficient only if consumers with higher willingness to pay for insurance have a higher …

Across a wide set of non-group insurance markets, applicants are rejected based on observable, often high …, disability, and life insurance. Consistent with the predictions of the theory, in all three settings I find significant amounts … be rejected relative to those who can purchase insurance; and I show it is enough private information to explain a …

form of monitored liquidity insurance. Bank monitoring and resulting credit line revocations help control illiquidity … because the cost of monitored liquidity insurance increases with liquidity risk. We exploit a quasi-experiment around the …

does not alter this result. We also show that the informationally constrained optimal insurance contract has a resetting …

Using a model with constant relative risk-aversion preferences, endogenous labor supply and partial insurance against … cost associated with missing insurance markets. On the other hand, greater wage dispersion presents opportunities to raise …

We develop a new framework for valuing health and longevity improvements that departs from conventional but unrealistic … assumptions of full annuitization and deterministic health. Our framework can value the prevention of mortality and of illness … consumers value life-extension more in bleaker health states. Third, retirement annuities boost aggregate demand for life …

-sharing reductions on the health insurance exchanges …Insurance affects the variability of consumption over time, which is not captured in standard expected utility of … value of insurance. Liquidity constraints generate high insurance demand when premiums are due smoothly, sometimes leading …

This paper investigates the rationale for government intervention in the market for terrorism insurance, focusing on … rational terrorists. Government subsidies for terror insurance can discourage self-protection and limit the inefficiencies …

-free real rate of interest is positive, the price of such an inflation insurance policy first rises and then falls with time to … inflation and the real risk premium on nominal bonds. When a deductible is introduced, the insurance policy can no longer be … insurance contracts are priced using the model developed by Black-Merton-Scholes. Pricing an inflation insurance policy with a …

Home equity insurance policies, policies insuring homeowners against declines in the price of their homes, would bear … some resemblance both to ordinary insurance and to financial hedging vehicles. A menu of choices for the design of such … insurance company in effect serves as a retailer to homeowners of short positions in real estate futures markets or of put …