Abstract The paper provides a comprehensive overview of modeling and pricing cyber insurance includes clear easily understandable explanations the underlying mathematical concepts. We distinguish three main types risks: idiosyncratic, systematic, systemic risks. While for idiosyncratic systematic risks, classical actuarial financial mathematics appear to be well-suited, risks require more sophi...

Awards for pain and suffering and other non-economic losses account for over half of all damages awarded under third-party auto insurance bodily injury settlements. This paper hypothesizes that insurers use general damage awards to reduce the incentive to submit exaggerated claims for specific damages for injuries and lost wages. Consistent with this hypothesis, the paper finds evidence using d...

The Effects of Incomplete Employee Wage Information: A Cross-Country Analysis In this paper, we define a tractable procedure to measure worker incomplete information in the labor market. The procedure, which makes use of earnings distribution skewness, is based on econometric frontier estimation techniques, and is consistent with search theory. We apply the technique to eleven countries over va...

The National Flood Insurance Program does not currently cover damage strictly attributable to coastal erosion. This paper uses the results of a nationwide survey of coastal property owners to estimate the demand for such insurance. We find that there is significant demand at prices in the range of current flood insurance premiums. Demand is influenced in the hypothesized way by increased measur...

Education is strongly related to participation in the Social Security Disability Insurance (DI) program. To explore this relationship, we describe the correlation between education and DI participation, and then explore how four factors related to education – health, wealth, occupation, and employment –feature in this correlation. We label these four factors “pathway” variables. We find that a ...

Inequities in marriage laws and domestic partnership benefits may have implications for who bears the burden of health care costs. We examined a recent period in California to illuminate disparities in health insurance coverage faced by same-sex couples. Partnered gay men are less than half as likely (42 percent) as married heterosexual men to get employer-sponsored dependent coverage, and part...

The existing literature assumes that unemployment insurance (UI) a↵ects the labor market through the job finding rate of eligible workers. I argue that this focus is too narrow. I show evidence for UI e↵ects through three other margins: (i) search externalities; (ii) takeup of other welfare state programs; and (iii) job separations. This suggests that the analysis of optimal UI should take a mo...

In the insurance market, the insurers who provide catastrophe insurance face with the risk of rare, but huge catastrophe claims. The introduction of catastrophe related securities into the marketplace provide the insurers the instruments to hedge some of the catastrophe risks they are facing. A catastrophe related security is tied to the prespecified catastrophe claims, while independent to oth...

This research first refines the pricing formula for mortgage insurance (MI) contracts proposed in Bardhan, Karapandža, and Urošević (2006) based on a modified contract whose setting is closer to reality. Since housing prices are usually observed to be cyclic in the mean growth rate and volatility due to economic fluctuations, our research further extends this modified MI pricing formula by taki...