with effort-determined probability. We show that if insurance against a negative shock is sufficiently incomplete, then … standard functional form restrictions ensure that individual objective functions are optimized by an effort and insurance … combination that is unique and satisfies first- and second-order conditions. Modeling insurance incompleteness in terms of costly …

measure of underinsurance will underestimate the number with low levels of insurance coverage due to moral hazard. We propose … small- versus large-firm workers with full-year, employer-sponsored insurance. Using data from the 2005 Medical Expenditure …

hazard. This paper shows how an intermediary can eliminate the moral-hazard problem by providing optimal insurance to the … as well as insurance terms for the rental agreement. The latter are set so as to eliminate moral hazard. The intermediary …

insurance by strictly-risk averse agents and risk-neutral firms when they enjoy limited liability. When exposed to a bankrupting … decision to insure will depend on whether the benefits the insuree derives from insurance after having compensated the damaged …

This paper investigates the incentive effects of automobile insurance, compulsory insurance laws, and no … 1970-1998, a period in which many states adopted compulsory insurance regulations and/or no-fault laws. Using an … instrumental variables approach, we find evidence that automobile insurance has moral hazard costs, leading to an increase in …