We study a competitive insurance industry in which insurers have limited liability, face frictional costs in holding capital, and offer coverage over a range of risk classes. We distinguish monoline and multiline industry structures, and provide what we believe are the first propositions...

We use a detailed panel data set of Swedish households to investigate the relation between their labor income risk and financial investment decisions. In particular, we relate changes in wage volatility to changes in the portfolio holdings for households that switched industries between 1999 and...