Because life annuities can increase the level and decrease the volatility of lifetime consumption, economists have long been puzzled by the low demand for life annuities. One potential rational explanation is that adverse selection drives up life annuity prices, which drives down demand. We study the choice between life annuities and lump sums made by 32,000 retiring public employees. These uni...

Background risk can influence the performance of insurance markets that must deal with adverse selection when applicants are risk vulnerable, since they are more averse to bearing the insurable risk as a result of their exposures to background risk. We show that background risk always results in a lower deductible for the incentive constrained contract, and that a broader range of markets attai...

This paper tests the presence of multiple independent submarkets in the Italian motor insurance industry. Independence is motivated by administrative boundaries among provinces and by further locational reasons. We find that the independence effects are sufficient to induce a minimum degree of inequality in the size distribution of firms once submarkets are aggregated. These results are fully c...

We present a simple put option pricing procedure within an asset±liability valuation model that can be used to estimate the incentives facing stock-based life insurance ®rms to voluntarily sell their businesses under various operating and regulatory conditions. Estimates are derived for samples of 11 sold ®rms and 24 continuing Australian life insurance companies over a period of industry conso...

We experimentally varied information mailed to 87,000 households in California’s health insurance marketplace study the role of frictions take-up. Reminders about enrollment deadline raised by 1.3 pp (16 percent) this typically low take-up population. Heterogeneous effects personalized subsidy indicate misperceptions program benefits. Consistent with an adverse selection model frictional costs,...

The research was conducted to prove empirically the impact of oil prices, interest rates, profitability, company size, and liquidity on leverage in mining sector companies Indonesia. study population 47 sector, using purposive sampling method, sample selected as many 32 a period 5 years from 2014 2018 so that 160 observations were obtained. data analysis method used random-effects model panel r...

In two previous papers on the infrared emission spectra of gaseous BeH2, BeD2, and MgH2 molecules, we reported rotational analyses of the antisymmetric stretching fundamental band and several hot bands. A customary effective rotational energy level expression, which is a power series in J J+1 with B v , D v , and H v constants, was used for most of the observed vibrational levels. For all the v...