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This paper investigates the costs and benefits of three ex ante flood management strategies - risk-based insurance … setting and in the absence of market failures, risk-based insurance perfectly internalizes flood risks and maximizes social … welfare. However, risk-based insurance faces major technical, social, and political challenges and is not always realistic …
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begins with a clear and comprehensive description of the theory of rent seeking and of contest design for political and …
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This paper locks at markets charaterized by the fact that the demand side is insured. In these markets a consumer purchases a good to compensate consequences of unfavorable events, such as an accident or an illness. Insurance policies in most lines of insurance base indemnity on the insured's...
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