Ebook: Contributions to Insurance Economics

For a number of years, I have been teaching and doing research in the economics of uncertainty, information, and insurance. Although it is now possible to find textbooks and books of essays on uncertainty and in­ formation in economics and finance for graduate students and researchers, there is no equivalent material that covers advanced research in insurance. The purpose of this book is to fill this gap in literature. It provides original surveys and essays in the field of insurance economics. The contributions offer basic reference, new material, and teaching supple­ ments to graduate students and researchers in economics, finance, and insurance. It represents a complement to the book of readings entitled Foundations of Insurance Economics - Readings in Economics and Finance, recently published by the S.S. Huebner Foundation of Insurance Education. In that book, the editors (G. Dionne and S. Harrington) disseminate key papers in the literature and publish an original survey of major contributions in the field.

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This book offers a basic reference, new material and teaching supplements to graduate students and researchers in economics, finance and insurance.
The book is divided into two main parts. Part I contains six survey articles on different subjects that represent significant developments over the past years: optimality of insurance contracting, liability insurance, moral hazard, adverse selection, insurance pricing and econometric estimation of accident distributions. Part 2 extends the recent literature by presenting fourteen essays on different subjects of current research in: (a) the theory of insurance economics covering nonlinear expected utility, prudence, deviant beliefs, incomplete markets, increases in risk, ambiguity; (b) problems of information including moral hazard and competitive markets, adverse selection and probationary periods, incomplete information and risk categorization; and (c) empirical studies on workers' compensation, adverse selection and the effects of no-fault in automobile insurance. Each paper is presented with an abstract and keywords, and can be read independently of the other contributions in the volume.

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This book offers a basic reference, new material and teaching supplements to graduate students and researchers in economics, finance and insurance.
The book is divided into two main parts. Part I contains six survey articles on different subjects that represent significant developments over the past years: optimality of insurance contracting, liability insurance, moral hazard, adverse selection, insurance pricing and econometric estimation of accident distributions. Part 2 extends the recent literature by presenting fourteen essays on different subjects of current research in: (a) the theory of insurance economics covering nonlinear expected utility, prudence, deviant beliefs, incomplete markets, increases in risk, ambiguity; (b) problems of information including moral hazard and competitive markets, adverse selection and probationary periods, incomplete information and risk categorization; and (c) empirical studies on workers' compensation, adverse selection and the effects of no-fault in automobile insurance. Each paper is presented with an abstract and keywords, and can be read independently of the other contributions in the volume.

Content:
Front Matter....Pages i-xix
Front Matter....Pages 1-1
Economic Theory of Risk Exchanges: A Review....Pages 3-23
The Demand for and Supply of Liability Insurance....Pages 25-60
Moral Hazard and Insurance Contracts....Pages 61-96
Adverse Selection in Insurance Markets: A Selective Survey....Pages 97-140
Financial Pricing of Property and Liability Insurance....Pages 141-168
Econometric Models of Accident Distributions....Pages 169-213
Front Matter....Pages 215-215
Optimal Insurance: A Nonexpected Utility Analysis....Pages 217-238
Background Risk, Prudence, and the Demand for Insurance....Pages 239-254
Optimum Insurance with Deviant Beliefs....Pages 255-274
Increases in Risk and the Demand for Insurance....Pages 275-290
Crop Insurance in Incomplete Markets....Pages 291-306
How does Ambiguity Affect Insurance Decisions?....Pages 307-324
Moral Hazard and Competitive Insurance Markets....Pages 325-358
Probationary Periods and Time-Dependent Deductibles in Insurance Markets with Adverse Selection....Pages 359-375
Insurance Classifications and Social Welfare....Pages 377-396
Social Insurance in Market Contexts: Implications of the Structure of Workers’ Compensation for Job Safety and Wages....Pages 399-422
Testing for Asymmetric Information in Canadian Automobile Insurance....Pages 423-443
Incentive Effects of No-Fault Automobile Insurance: Evidence from Insurance Claim Data....Pages 445-470
Measuring the Effects of the No-Fault 1978 Quebec Automobile Insurance Act with the DRAG Model....Pages 471-498
Liability Versus No-Fault Automobile Insurance Regimes: An Analysis of the Experience in Quebec....Pages 499-520
Back Matter....Pages 521-524

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This book offers a basic reference, new material and teaching supplements to graduate students and researchers in economics, finance and insurance.
The book is divided into two main parts. Part I contains six survey articles on different subjects that represent significant developments over the past years: optimality of insurance contracting, liability insurance, moral hazard, adverse selection, insurance pricing and econometric estimation of accident distributions. Part 2 extends the recent literature by presenting fourteen essays on different subjects of current research in: (a) the theory of insurance economics covering nonlinear expected utility, prudence, deviant beliefs, incomplete markets, increases in risk, ambiguity; (b) problems of information including moral hazard and competitive markets, adverse selection and probationary periods, incomplete information and risk categorization; and (c) empirical studies on workers' compensation, adverse selection and the effects of no-fault in automobile insurance. Each paper is presented with an abstract and keywords, and can be read independently of the other contributions in the volume.

Content:
Front Matter....Pages i-xix
Front Matter....Pages 1-1
Economic Theory of Risk Exchanges: A Review....Pages 3-23
The Demand for and Supply of Liability Insurance....Pages 25-60
Moral Hazard and Insurance Contracts....Pages 61-96
Adverse Selection in Insurance Markets: A Selective Survey....Pages 97-140
Financial Pricing of Property and Liability Insurance....Pages 141-168
Econometric Models of Accident Distributions....Pages 169-213
Front Matter....Pages 215-215
Optimal Insurance: A Nonexpected Utility Analysis....Pages 217-238
Background Risk, Prudence, and the Demand for Insurance....Pages 239-254
Optimum Insurance with Deviant Beliefs....Pages 255-274
Increases in Risk and the Demand for Insurance....Pages 275-290
Crop Insurance in Incomplete Markets....Pages 291-306
How does Ambiguity Affect Insurance Decisions?....Pages 307-324
Moral Hazard and Competitive Insurance Markets....Pages 325-358
Probationary Periods and Time-Dependent Deductibles in Insurance Markets with Adverse Selection....Pages 359-375
Insurance Classifications and Social Welfare....Pages 377-396
Social Insurance in Market Contexts: Implications of the Structure of Workers’ Compensation for Job Safety and Wages....Pages 399-422
Testing for Asymmetric Information in Canadian Automobile Insurance....Pages 423-443
Incentive Effects of No-Fault Automobile Insurance: Evidence from Insurance Claim Data....Pages 445-470
Measuring the Effects of the No-Fault 1978 Quebec Automobile Insurance Act with the DRAG Model....Pages 471-498
Liability Versus No-Fault Automobile Insurance Regimes: An Analysis of the Experience in Quebec....Pages 499-520
Back Matter....Pages 521-524
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