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 …

This paper evaluates the welfare implications of privatization in emerging market economies, in countries where … policies are determined by the median voter. We show that privatization may lead to large efficiency gains by changing the menu … of taxes. We illustrate this point with two examples. First, we consider privatization of import competing public …

least insured. We document this risk-insurance pattern in data on life-insurance drawn from the Survey of Consumer Finance …. A calibrated version of the model can quantitatively account for the life-cycle variation of insurance observed in the … US data and implies welfare costs of under-insurance for young households that are equivalent to a 4 percent reduction in …

This paper studies the cycles of nationalization and privatization in resource-rich economies. We discuss available … evidence on the drivers and consequences of privatization and nationalization, review the existing literature, and present … determinants of the observed cycles of privatization and nationalization, and is consistent with a variety of observed phenomena …

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

We propose and test a theory of corporate liquidity management in which credit lines provided by banks to firms are 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 …

illness can significantly increase the value of statistical life, helping to reconcile theory with empirical findings that …

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 … to seemingly dominated choices. Conversely, a risk-averse person may value insurance below its expected value and appear …