This paper theoretically studies and empirically estimates (1) how spousal labor supply affects bargaining between the husband and wife over their private consumption, and (2) the impact of this intrahousehold bargaining on their reservation wage and unemployment duration. We consider a model of...

Motivated by the EU Solvency II Directive, we study the one-year ruin probability of an insurer who makes investments and hence faces both insurance and financial risks. Over a time horizon of one year, the insurance risk is quantified as a nonnegative random variable X equal to the aggregate...