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Can I read Optimal Insurance Under Moral Hazard in Loss Reduction on EtoBox?
Optimal Insurance Under Moral Hazard in Loss Reduction by Hangsuck Lee; Minha Lee; Jimin Hong is a Economics, Econometrics and Finance article available to read on EtoBox.
What is Optimal Insurance Under Moral Hazard in Loss Reduction about?
This study investigates the optimal insurance when moral hazard exists in loss reduction. We identify that the optimal insurance is full insurance up to a limit and partial insurance above that limit. In case of partial insurance, the indemnity schedule for prudent individual is convex, linear, or concave in loss, depending on the shapes of the utility and loss distribution. The optimal insurance may include a deductible for large losses only when the indemnity schedule is convex. It may also include a fixed reimbursement when the schedule is convex or concave. When the loss distribution belongs to the one dimensional exponential family with canonical form, the indemnity schedule is concave under IARA and CARA, whereas it can be concave or convex under DARA.
Who reads Optimal Insurance Under Moral Hazard in Loss Reduction?
It is typically read by researchers, students, and practitioners in Economics, Econometrics and Finance.
- Author
- Hangsuck Lee; Minha Lee; Jimin Hong
- Publisher
- Elsevier BV
- Published
- 2022
- Language
- EN
- Field
- Economics, Econometrics and Finance (Social Sciences)