A fundamental idea in modern asset pricing is that risk aversion may be time varying and countercyclical (Campbell and Cochrane 1999). Existing evidence is scant and based mostly on experimental or survey data. We aim to test this key assumption using a large panel of real-world transaction...

The existence of information asymmetry in automobile insurance market has been studied extensively, yet the previous work mainly focus on different characteristics of insureds, and less frequently on different types of claims. We make use of a unique and complete dataset, which enable us to test...

Adverse selection and moral hazard are different types of information asymmetry in the insurance market, but their empirical evidence cannot be separated using the traditional positive risk-coverage correlation test. In this paper, we use a new method to disentangle adverse selection and moral...

What drives information asymmetry? What’s the relationship between information asymmetry and competitiveness? Based on a large dataset of China’s automobile insurance market, we find solid evidence of the existence of asymmetric information in China’s automobile insurance market according...