Demand for insurance can be driven by high risk aversion or high risk. We show how to separately identify risk … to continuous risks. We illustrate our approach using the Massachusetts Health Insurance Exchange, where choices provide … preferences and risk types using only choices from menus of insurance plans. Our revealed preference approach does not rely on …

Can measured risk attitudes and associated structural models predict insurance demand? In an experiment (n = 1,730), we … parameterize seventeen common structural models (e.g., expected utility, cumulative prospect theory). Subjects also make twelve … insurance choices over different loss probabilities and prices. The insurance choices show coherence and some correlation with …

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 …

hospital-insurer bargaining over premiums and reimbursements, household demand for insurance, and individual demand for …

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 …

transformed the operation of insurance and credit markets. In this paper, we observe that these widely-used scores are statistical … Medicare Part D prescription drug insurance program. We show that the “risk scores,” which are designed to predict an … between two different sources of spending: underlying health, and responsiveness of drug spending to the insurance contract …

Most existing studies of risk selection in the employer-sponsored health insurance market are case studies of a single …

empirical analysis of firm behavior that compares corporate demand for property and catastrophe insurance (here, terrorism). We … decisions. The main finding is that demand for property and catastrophe insurance are not very different and that the demand for …Using a unique dataset of insurance decisions by over 1,800 large U.S. corporations, this study provides the first …

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 …