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A simple test of private information in the insurance markets with heterogeneous insurance demand

Gan, Li; Huang, Feng; Mayer, Adalbert - 2011

NBER Bulletin on Aging and Health by email. A positive correlation between insurance coverage and ex post risk can be an … indicator for private information in insurance markets. However, this test fails if agents have heterogeneous risk attitudes. We … risk attitudes. We apply our technique to the market for long-term care insurance. Finkelstein and McGarry (2006) provide …

Persistent link: https://www.econbiz.de/10008839740