We analyze dynamic interactions between market insurance, the stock of insurable assets and liquid wealth accumulation … representative agent demands a nonnegligible amount of market insurance. The deductible is substantially higher than in static models … because agents can time-diversify their risk. Market insurance implies welfare gains of around .6% in terms of non …

We offer a novel explanation of underwriting volatility in property-liability insurance markets in terms of private … equity value of insurance firms. Solvency regulations, however, pose a second source of risk to equity value when the …-reply underwriting strategy of a representative insurance firm and the implementation strategy of a representative regulator. Owing to …

provision and leads to less trade, thus reducing efficiency. In theory, insurance also increases the provision of incorrect … such markets, insurance on the customer side, interacts with the degree of diagnostic uncertainty. We present a model that … analyzes the effects of both diagnostic uncertainty and insurance in a unified framework and we test the model's predictions in …

markets: (i) diagnostic uncertainty of experts; (ii) insurance coverage of consumers; (iii) malpractice payments for treatment … provision. Insurance coverage and malpractice payments have an ambiguous effect on efficient provision. The impact of consumer …-regarding preferences on efficiency is positive without insurance but ambiguous in the presence of insurance. …

between sellers and customers. We examine experimentally the effects of diagnostic uncertainty and insurance coverage on the … diagnostic uncertainty is a major source of inefficiency by decreasing efficient service provision. Insurance coverage has a …