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Insuring a risky investment project

Loubergé, Henri (contributor); Watt, Richard (contributor) - 2006

In the standard model for insurance demand, the risk is totally exogenous and the insurance premium is paid for out of … attempts to provide foundations for a theory of insurance demand leading to less provocative comparative statics results. In … these papers, the risk for which coverage is sought becomes endogenous and the decision to purchase insurance is made …