Why is the cost of resolving insurance company failures so high? Evidence in this paper suggests that the state insurance regulatory bodies in charge of the liquidation process turn over an average of only 37 cents for each $1,00 of pre-insolvency assets to the guaranty funds.

State fuaranty funds (GFs) are quasi-governmental agencies that provide insurance to policyholders against the risk of insurance company failure. But insurance provided by guarantee funds, like all insurance, creates moral hazard problems, especially for companies that are insulvent of...

It is well known that modern governments are unwilling to use poll taxes because it corresponds to political suicide. Still, poll taxes are allegedly the most efficient form of taxation. Building on Eaton and Rosen (1980) and Peck (1989), the goal of this paper is to show a case where an excise...

There are numerous links, both direct and indirect, betwwen real estate markets and insurance products. One of the diract links that has been the focus of much attention recently in the US is homeowners insurance, especially in hazard prone areas. Another direct link not receiving as much...