Conventional theory for private information of adverse selection predicts a positive correlation between insurance … information on mortality risk. The reason for this contradictory result is the existence of multiple dimensions of private … on mortality risk. A mixture density model is applied to disentangle these two effects …

Conventional theory for private information of adverse selection predicts a positive correlation between insurance … information on mortality risk. The reason for this contradictory result is the existence of multiple dimensions of private … on mortality risk. A mixture density model is applied to disentangle these two effects …

Adverse selection theory predicts that people with a high death risk are more likely to purchase life insurance. The …