This paper documents that managers having large private benefits of control tend to purchase more insurance to reduce their exposure to the firm's unsystematic risk. Private benefits of control are estimated as the difference between the price of the stock and an equivalent synthetic stock (constructed with options). Our empirical analysis controls for the simultaneity between the choice of the...

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The purpose of this paper is to examine the alternative explanatory factors of the so-called long term care insurance puzzle, namely the fact that so few people purchase a long term care insurance whereas this would seem to be a rational conduct given the high probability of dependence and the high costs of long term care. For that purpose, we survey various theoretical and empirical studies of...

As health care costs continue to rise, health insurance premiums have also been forced upward. As a result, the number of uninsured Americans has increased. Those who continue to purchase insurance face heavy costs. It is important for policy makers to understand how different groups respond differently to such changes. This study uses a panel data set from a single firm to measure the relative...

This paper describes the contract design and institutional features of an innovative rainfall insurance policy offered to smallholder farmers in rural India and presents preliminary evidence on the determinants of insurance participation. Insurance take-up is found to be decreasing in basis risk between insurance payouts and income fluctuations, higher among wealthy households, and lower among ...

At the same time, promoting health care “value” has become a focal point of state and national policymakers in their efforts to improve the health care system. The 2010 Patient Protection and Affordable Care Act (ACA) directs states to set up exchanges where consumers and small businesses can purchase health insurance. These exchanges are required by legislation to present information on value,...