where g1(x) = εg11(x)+ε g12(x)+ε g13(x), g2(x) = εg21(x) + ε g22(x) + ε g23(x) and f(x) = εf1(x) + εf2(x) + ε f3(x) where g1i, g2i, f2i have degree k, m and n respectively for each i = 1, 2, 3, and ε is a small parameter. Note that when g1(x) = 0 we obtain the generalized Liénard polynomial differential systems. We provide an upper bound of the maximum number of limit cycles that the previous d...

This paper investigates the impact of demographic shocks on optimal decisions about saving, life insurance, and, most centrally, asset allocation. The analysis indicates that marital-status transitions can have important effects on optimal household decisions, particularly in the cases of widowhood and divorce. Children also play a fundamental role in portfolio choice; in addition to leading to...

We derive an exact nonlinear nonlocal macroscopic equation for the time evolution of the conserved order parameter rsr, td of a microscopic model binary alloy undergoing phase segregation: a d-dimensional lattice gas evolving via Kawasaki exchange dynamics, satisfying detailed balance for a Hamiltonian with a long range pair potential gdJsgjxjd. The macroscopic evolution is on the spatial scale...

Most individual life insurance policies lapse, with lapsers cross-subsidizing non-lapsers. We show that and lapse patterns predicted by standard rational expectations models are the opposite of those observed empirically. propose two behavioral consistent evidence: (i) consumers forget to pay premiums (ii) understate future liquidity needs. conduct surveys a large insurer. New buyers believe th...

We explore how private drug plans set cost-sharing in the context of Medicare Part D. While publicly-provided drug coverage typically involves uniform cost-sharing across drugs, we document substantial heterogeneity in the cost-sharing for different drugs within privately-provided plans. We also document that private plans systematically set higher consumer cost sharing for drugs or classes ass...

This paper examines transition in the level of competition in the Japanese life insurance industry over the last ten years. We estimate the first order condition for profit maximizing insurance oligopolies to obtain the degree of non-competition and collusion. Estimation results suggest: 1) mutual companies, like stock companies, seek to maximize their own profits rather than pay out dividends ...

Households’ insurance against shocks to income and asset values (that is, household risk management) is limited, especially for poor households. We argue that a trade-off between intertemporal financing needs and insurance across states explains this basic insurance pattern. In a model with limited enforcement, we show that household risk management is increasing in household net worth and inco...

The realization that mere existence of health care facilities does not necessarily mean that they are readily accessible to the poorest section in the informal economy, tend to the evolution of a unique health insurance scheme, with contribution according to individual capacity. This paper examines several health insurance schemes catering to the informal sector as well as some critical issues ...

Insurance has an intertemporal aspect as insurance premia have to be paid upfront. We argue that the financing aspect of insurance is key to understanding basic insurance patterns. In a model with limited enforcement, we show that insurance is globally monotone increasing in household net worth and income, incomplete, and precautionary. These results hold in economies with income risk, durable ...

The social cost of carbon is the expected present value damages from emitting one ton today. We use perturbation theory to derive an approximate tractable expression for this adjusted climatic and economic risk. allow different aversion risk intertemporal fluctuations, skewness dynamics in distributions climate sensitivity damage ratio, correlated shocks. identify prudence, insurance, exposure ...