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Endogenous Policy Leads to Inefficient Risk Sharing

Celentani, Marco; Conde-Ruiz, J. Ignacio; Desmet, Klaus - 2003

We analyze risk sharing and fiscal spending in a two-region model with sequentially complete markets. Fiscal policy is determined by majority voting. When policy setting is decentralized, regions choose pro-cyclical fiscal spending in an attempt to manipulate security prices to their benefit....

Persistent link: https://www.econbiz.de/10014116686

Cyber Risk, Market Failures, and Financial Stability

Kopp, Emanuel - 2017

Cyber-attacks on financial institutions and financial market infrastructures are becomingmore common and more sophisticated. Risk awareness has been increasing, firms activelymanage cyber risk and invest in cybersecurity, and to some extent transfer and pool theirrisks through cyber liability...

Persistent link: https://www.econbiz.de/10012948520

Price Uncertainty and Price-Contingent Securities

Heal, Geoffrey - 2017

I extend the classical general equilibrium treatment of uncertainty about exogenous states of nature to uncertainty … results. One is set of conditions that are necessary and sufficient for the existence of equilibrium (called an equilibrium … conditions under which agents are fully insured at an equilibrium. Finally I show that agents' price expectations matter in the …

Persistent link: https://www.econbiz.de/10012949911

Risk Sharing in Highly Incomplete Markets : The Role of Insurance Companies

Goussebaïle, Arnaud - 2018

equilibrium economy is considered in which heterogeneous agents face endowment risks. Markets are incomplete: there are only …

Persistent link: https://www.econbiz.de/10012908638

Risk Allocation and Financial Intermediation

Goussebaïle, Arnaud - 2021

The classic Arrow-Debreu framework requires a very large number of specific securities to reach Pareto optimality. The present paper shows that financial intermediation can play an important role in maintaining a more parsimonious market framework while still obtaining Pareto optimality. In the...

Persistent link: https://www.econbiz.de/10013212181

Marine insurance in early modern Genoa (1564-1571) : a risk-shifting or risk-sharing tool?

Iodice, Antonio - In: Asia-Pacific journal of risk and insurance : APJRI 17 (2023) 2, pp. 215-231

Persistent link: https://www.econbiz.de/10014370387

Risk Selection in Natural Disaster Insurance the Case of France

Jametti, Mario; Ungern-Sternberg, Thomas von - CESifo GmbH <München> - 2006

It is widely recognized that "market failure" prevents efficient risksharing in natural disaster insurance. As a consequence, many countriesadopted institutional frameworks presenting public sector participation,often praised as public-private partnerships. We define risk selection asa situation...

Persistent link: https://www.econbiz.de/10005861242

Enterprise Risk Management in Financial Groups : Analysis of Risk Concentration and Default Risk

Gatzert, Nadine; Schmeiser, Hato; Schuckmann, Stefan - Institut für Versicherungswirtschaft <Sankt Gallen> - 2007

In financial groups enterprise risk management is becoming increasingly importantin controlling and managing the different independent legal entities in thegroup. The aim of this paper is to assess and relate risk concentration and joint defaultprobabilities of the groups legal entities in...

Persistent link: https://www.econbiz.de/10005861509

Implicit Options in Life Insurance : Valuation and Risk Management

Gatzert, Nadine; Schmeise, Hato - Institut für Versicherungswirtschaft <Sankt Gallen> - 2006

Participating life insurance contracts typically contain various types of implicit options. These implicit options can be very valuable and can thus represent a sig-nificant risk to the insurance companies issuing these contracts in case of in-sufficient risk management. Options can get...

Persistent link: https://www.econbiz.de/10005861539

Interne Risikosteuerungsmodelle aus wissenschaftlicher Sicht

Osetrova, Anna; Schmeiser, Hato - Institut für Versicherungswirtschaft <Sankt Gallen> - 2005

Die aktuellen EU-Solvabilitätsvorschriften sind seit ihrer Einführung in den Jahren1973 (Nichtlebensversicherungen) und 1979 (Lebensversicherungsunternehmen)Gegenstand massiver Kritik.1 Ein zentraler Kritikpunkt resultiert aus derTatsache, dass sich die EU-Solvabilitätsregeln lediglich am...

Persistent link: https://www.econbiz.de/10005861554