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Testing for Adverse Selection in Insurance Markets
Cohen, Alma - 2010
empirical work that seeks to test the basic coverage-risk prediction of adverse selection theory--that is, that policyholders …
Persistent link: https://www.econbiz.de/10013149708
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Composition of Capital Flows : A Survey
Kirabaeva, Koralai - 2010
We survey several mechanisms that explain the composition of international capital flows: foreign direct investment, foreign portfolio investment and debt flows (bank loans and bonds). We focus on information frictions such as adverse selection and moral hazard, and exposure to liquidity shocks,...
Persistent link: https://www.econbiz.de/10013136735
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Composition of International Capital Flows : A Survey
Kirabaeva, Koralai - 2010
In an integrated world capital market with perfect information, all forms of capital flows are indistinguishable. Information frictions and incomplete risk sharing are important elements that needed to differentiate between equity and debt flows, and between different types of equities. This...
Persistent link: https://www.econbiz.de/10013149659
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Characterization, Existence, and Pareto Optimality in Insurance Markets with Asymmetric Information with Endogenous and Asymmetric Disclosures : Revisiting Rothschild-Stiglitz
Stiglitz, Joseph E. - 2018
We study the Rothschild-Stiglitz model of competitive insurance markets with endogenous information disclosure by both firms and consumers. We show that an equilibrium always exists, (even without the single crossing property), and characterize the unique equilibrium allocation. With two types...
Persistent link: https://www.econbiz.de/10012916614
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A Welfare Analysis of Competitive Insurance Markets with Vertical Differentiation and Adverse Selection
MacLeod, W. Bentley - 2023
A feature of many insurance markets is that they combine vertical differentiation (all consumers prefer high to low-coverage policies) and adverse selection (high cost customers prefer high-coverage plans). Building on Novshek and Sonnenschein (1978) and Azevedo and Gottlieb (2017), this paper...
Persistent link: https://www.econbiz.de/10014263157
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Selection on Moral Hazard in Health Insurance
Einav, Liran - 2015
In this paper we explore the possibility that individuals may select insurance coverage in part based on their anticipated behavioral response to the insurance contract. Such "selection on moral hazard" can have important implications for attempts to combat either selection or moral hazard. We...
Persistent link: https://www.econbiz.de/10013038050
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Optimality and Equilibrium in a Competitive Insurance Market Under Adverse Selection and Moral Hazard
Stiglitz, Joseph E. - 2013
This paper analyzes optimal and equilibrium insurance contracts under adverse selection and moral hazard, comparing them with those under a single informational asymmetry. The complex interactions of self-selection and moral hazard constraints have important consequences. We develop an analytic...
Persistent link: https://www.econbiz.de/10013077944
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Adverse Selection in Insurance Markets : Policyholder Evidence from the U.K. Annuity Market
Finkelstein, Amy - 2010
, consisting of all annuity policies sold by a large U.K. insurance company since the early 1980s, to analyze mortality differences …-post mortality and annuity policy characteristics, such as whether the annuity will make payments to the estate in the event of an … untimely death and whether the payments from the annuity rise over time. These mortality patterns are consistent with models of …
Persistent link: https://www.econbiz.de/10012763256
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Can Consumers Detect Lemons? Information Asymmetry in the Market for Child Care
Mocan, Naci H. - 2021
This paper applies direct tests for adverse selection and moral hazard in the market for child care. A unique data set containing quality measures of various characteristics of child care provided by 746 rooms in 400 centers, as well as the evaluation of the same attributes by 3,490 affiliated...
Persistent link: https://www.econbiz.de/10013245097
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Causes of the Korean Financial Crisis : Lessons for Policy
Hahm, Joon-Ho; Mishkin, Frederic S. - 2022
This paper uses an asymmetric information framework to understand the causes of the recent financial crisis in Korea. It shows that the Korean data is consistent with this explanation of the crisis. It then draws on this analysis to discuss several lessons that can help guide Korean policymakers...
Persistent link: https://www.econbiz.de/10013311629