This paper reconsiders the literature on the irrelevance of privatization in mixed markets, addressing both quantity …

This paper presents a welfare analysis of several capital insurance programs in a rational expectation equilibrium … setting. We first explicitly characterize the equilibrium of each capital insurance program. Then, we demonstrate that a … capital insurance program based on aggregate loss is better than classical insurance, when big financial institutions have …

Insurance regulation is typically aimed at policyholder protection. In particular, regulators attempt to ensure the … financial "safety" of insurance firms, for example, by means of capital regulation, and to enhance the "affordability" of … insurance, for example, by means of price ceilings. However, these goals are in conflict. Therefore, we identify situations in …