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 …

the seemingly failure of the private insurance market to provide coverage for terrorism losses after the attack on … government provision of terrorism insurance. The paper argues that mostly unfettered insurance and capital markets are capable of …

This paper investigates the incentive effects of automobile insurance, compulsory insurance laws, and no … 1970-1998, a period in which many states adopted compulsory insurance regulations and/or no-fault laws. Using an … instrumental variables approach, we find evidence that automobile insurance has moral hazard costs, leading to an increase in …

This paper analyzes the impact of rate regulation on the structure of insurance markets for private passenger … automobile insurance. The paper argues that states' restrictions on automobile insurers' rates of return will distort the … those states which impose the most stringent regulation. The analysis suggests that increased regulatory stringency lowers …

Massachusetts that the demand for auto insurance is highly price elastic. This implies that regulation induced price rollbacks (such …This paper examines various explanations for the increase in the degree of regulation of the auto industry in the last … increase in regulation in two ways: a) As an attempt to lower rates to deal with the problem of the uninsured motorist. b) More …

transactions cost-mobility constraints. Contracts provide full unemployment insurance for risks that are diversifiable by pooling … among firms. Nondiversifiable (macro) risks are only partially shifted,largely through self-insurance (contingency saving … value because it reduces lifetime consumption. The main empirical implication of contract theory is shown to be closely …

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 …