This paper, instead of focusing on agency cost, analyzes the role of risk-sharing under problems of enforceability (default) to explain the optimal determination of capital structure. Optimal contract structure presents equity and debt.

We analyze risk sensitive incentive compatible deposit insurance in the presence of private information when the market value of deposit insurance can be determined using Merton's (1977, 3-11) formula.

This paper provides a survey on optimal insurance when insurers and policy holdes have symmetric information about the distribution of potential damages. When transaction costs are proportional to transfers, we show that 1)there is at least one state of the world where no indemnity is paid, 2)...

This article examines, under the Dual Theory of Choice (Yaari (1987)), the classical results and their extensions on self-insurance, self-protection and market insurance obtained by Ehrlich and Becker (1972) under the expected utility hypothesis. In particular, background risk, non-reliability,...

We introduce nonlinear panel data models for individual risl management and control. Our approach extends traditional models by allowing for nonlinearities in input variables and unobserved individual heterogeneity with possible temporal dependence. This permits us to develop nonlineat models...

The objective of this paper is to present the role and importance of internal control systems in good risk management practice, with a particular emphasis on the internal audit and compliance functions within such a framwork. Our focus is on the Life and Health Insurance industry in Canada.

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...

The goal of this paper id to test whether the threat of regulating (or more stringent regulation of) automobile liability insurance as portrayed in the population and industry press induces insurers to change the way they price their policies.

The purpose of this paper is to study the prevention impact upon the economic dynamics. We use an overlapping-generations model with production in which we have introduced a financial loss for households. This risk is endogenous and depends on the individual prevention levels. The dynamic paths...

The aim of this short note is to investigate the impact of duplicates in a life insurance portfolio by means of the supermodular order. Most classical results involving the variances are generalized using the stop-less order.