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Empirical analyses of selection and welfare in insurance markets: a self-indulgent survey

Author

Listed:
  • Liran Einav

    (Stanford University
    NBER)

  • Amy Finkelstein

    (MIT
    NBER)

Abstract

This review article surveys work that has been done using an empirical framework for analyzing selection in insurance markets developed by Einav et al. (Einav et al., Quarterly Journal of Economics 125:877–921, 2010a). We briefly review that framework, and then describe a number of empirical applications that researchers have undertaken across an array of settings in both insurance and credit markets. We also discuss some of the useful extensions to the original framework that others have made and applied. The review is intended to be useful for scholars who may want to apply the framework in their own work on insurance, credit, or other selection markets.

Suggested Citation

  • Liran Einav & Amy Finkelstein, 2023. "Empirical analyses of selection and welfare in insurance markets: a self-indulgent survey," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 48(2), pages 167-191, September.
    • Handle: RePEc:pal:genrir:v:48:y:2023:i:2:d:10.1057_s10713-023-00084-3
    DOI: 10.1057/s10713-023-00084-3
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    2. Glenn W. Harrison, 2024. "Risk preferences and risk perceptions in insurance experiments: some methodological challenges," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 49(1), pages 127-161, March.
    3. Chatterjee, Indradeb & Hao, MingJie & Tapadar, Pradip & Thomas, R. Guy, 2024. "Can price collars increase insurance loss coverage?," Insurance: Mathematics and Economics, Elsevier, vol. 116(C), pages 74-94.

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    More about this item

    Keywords

    Adverse selection; Asymmetric information; Insurance markets; Welfare analysis;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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