Froot, Kenneth A. - In: Journal of Risk & Insurance 74 (2007) 2, pp. 273-299
This article builds on Froot and Stein in developing a framework for analyzing the risk allocation, capital budgeting, and capital structure decisions facing insurers and reinsurers. The model incorporates three key features: (i) value-maximizing insurers and reinsurers face product-market as...