We use data on households' deductible choices in auto and home insurance to estimate a structural model of risky choice …

and car insurance using data from the UK. The main empirical results are: - higher labor income risk induces a higher … demand for car insurance. - the effects of increases in labor income risk after 1979 seem to be more than offset by a more …

We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates "standard …

We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates 'standard …

risk averse anymore even if utility from divisible consumption is concave. I propose a definition of insurance in the … context of state-dependent preferences and investigate the different motives underlying insurance demand. The same reasons … that bases insurance demand on risk aversion with important implications for policy and research. …

purchase price can be presented as the increase in the willingness to pay for insurance or the willingness to pay for consumer … credit. The optimal consumer decision represents the trade-off between the propensity to search for beneficial insurance or … consumer credit, and marginal savings on insurance policy or consumer credit. Under price dispersion the indirect utility …

I revisit the question of which motive underlies insurance demand. I draw on the literature of state-dependent utility … and on the literature of imperfectly divisible consumption to argue that the general purpose of insurance is not a risk … transfer, but meeting a conditional need. In this way, insurance aligns the risk in one's ftnancial endowment with the risk in …

We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates "standard …