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 …

State guaranty funds are quasi-governmental agencies that provide insurance to policyholders against the risk of … insurance company failure. But insurance provided by guaranty funds, like all insurance, creates moral hazard problems … insurance companies to borrow money (i.e., from policyholders). Moreover, the existence of guaranty fund insurance enables …

We assemble and analyze a new data set of homeowner insurance claims from 28 independently operated country … subsidiaries of a multinational insurance company. A fundamental feature of the data is that such claims are often disputed, and … lead to rejections or lower payments. We propose a new model of insurance, in which consumers can make invalid claims and …

bearing are examined in a model in which private insurance is taken into account. It is demonstrated that government relief is … inefficient, even when private insurance is subject to moral hazard, because relief shields individuals from some of the effects …

This paper tests restrictions implied by the canonical theory of insurance under asymmetric information using ideal … life insurance. We report several findings which are hard to reconcile with the canonical theory. First, we find a striking … find that risk is negatively correlated with the quantity of insurance purchased although the theory predicts a positive …

supplemental (undisclosed and nonexclusive) contract that brings the high risk individual to full insurance (at his own odds). We …We study the Rothschild-Stiglitz model of competitive insurance markets with endogenous information disclosure by both …

A large empirical literature found that the correlation between insurance purchase and ex post realization of risk is … insurance a la Akerlof (1970), Pauly (1974) and Rothschild and Stiglitz (1976) where consumers have one … in a negative correlation in equilibrium between insurance coverage and ex post realization of risk. We show that if the …

calibrated model of employer-sponsored health insurance, we show that the risk adjustment commonly used by employers to offset …

We study the optimal provision of insurance against unobservable idiosyncratic shocks in a setting in which a … transmitted to the government. The central feature of the optimal contract is that agents who enter the period with low implicitly …-promised lifetime utilities reveal no information to the government and receive no insurance against current period shock, while agents …