This chapter surveys a number of recent empirical studies that test for or evaluate the
importance of asymmetric information in insurance relationships. Our focus throughout is on …

The term “moral hazard” when interpreted literally has a strong rhetorical tone, which has
been used by stakeholders to influence public attitudes to insurance. In contrast, economists …

Using a unique dataset, we test whether households' deductible choices in auto and home
insurance reflect stable risk preferences. Our test relies on a structural model that assumes …

Econometric models of dynamic discrete choice processes are applied to a wide variety of
economic problems. Recent research on their empirical content has brought important new …

We consider the identification of a Markov process {Wt, Xt∗} when only {Wt} is observed. In
structural dynamic models, Wt includes the choice variables and observed state variables of …

The identification of information problems in different markets is a challenging issue in the
economic literature. In this paper, we study the identification of moral hazard from adverse …

The widespread concern that research into and potential implementation of climate
engineering would reduce mitigation and adaptation is critically examined. First, empirical …

Not only does economic theory predict high-risk individuals to be more likely to purchase
insurance, but insurance coverage is also thought to crowd out precautionary activities. In …

Bonus-malus systems (BMSs) are widely used in actuarial sciences. These systems are
applied by insurance companies to distinguish the policyholders by their risks. The most …

We propose a multiperiod insurance model under a bonus–malus system with two rate
classes and consider an insured who has purchased full insurance for her losses. To …