under demand uncertainty: we solve for equilibrium and optimum as benchmarks, and evaluate the efficiency of possible … first-best case, even though the capacity is higher than the capacity for the deterministic demand equal to the expected …

demand for car insurance. - the effects of increases in labor income risk after 1979 seem to be more than offset by a more …Microeconomic theory predicts that under certain regularity conditions higher idiosyncratic risk increases the … propensity to insure against independent marketable risks. We apply these predictions to the specific case of labor income risk …

demand arise as a risk factor. Motivated by theory, we use shocks to the ratio of residential-to-aggregate investment to … capture the housing demand risk. The single-factor model exhibits strong explanatory power for expected returns across various … consumption generates procyclical demand for housing. Marginal utility falls when housing demand rises and innovations to housing …

unpredictable (and unobservable) fluctuations in demand for life insurance as well as changes in risk type (observable) over … whose type turns out to be high risk but low demand renew more of their GR insurance than is efficient due to the attractive … literature that, when there is (only) risk type uncertainty, the optimal GR contract with renewal price set at the actuarially …