illness can significantly increase the value of statistical life, helping to reconcile theory with empirical findings that …

illness can significantly increase the value of statistical life, helping to reconcile theory with empirical findings that …

due to the limited pledgeability of human capital. We show analytically that, consistent with the life insurance data, in … account for the life-cycle variation of life-insurance holdings, financial wealth, earnings, and consumption inequality … insurance. …

with the life insurance data, in equilibrium young households are borrowing constrained and under-insured against human … capital risk. A calibrated version of the model can quantitatively account for the life-cycle variation of life-insurance … to a substantial increase in the volume of both credit and insurance. …

insurance. I compare models with deterministic and stochastic hazard rate of death to a model without mortality risk. Mortality … influences optimal controls and wealth evolution. The insurance is used to ensure optimal bequest such that there is no … accidental bequest. In the absence of the insurance, the biggest part of bequest is accidental. …

Guaranteed renewability is a prominent feature in many health and life insurance markets. It is well established in the … fair price for low risk types provides full insurance against reclassification risk. We develop a model that includes … unpredictable (and unobservable) fluctuations in demand for life insurance as well as changes in risk type (observable) over …