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Home equity insurance policies, policies insuring homeowners against declines in the price of their homes, would bear some resemblance both to ordinary insurance and to financial hedging vehicles. A menu of choices for the design of such policies is presented here, and conceptual issues are...
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-selection theory and modeling and illustrate how regulation regarding insurer use of predictive genetic test results could impact anti …
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preference functional is a distorted expected value function based on prospect theory. Specifically, we exploit Weber's methods … properties of GSR based on the prospect theory and the underlying value function and weighting function in terms of convexity … utility and Yaari's dual theory of choice as special cases. Finally, we propose a computational scheme for calculating GSR …
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People often fail to insure against catastrophes, even when insurance is subsidized. Even when insuring homes, many homeowners still underinsure the full value of their assets. Some researchers have suggested using long-term insurance contracts to reduce these insurance gaps. We examine...
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