nep-ias New Economics Papers
on Insurance Economics
Issue of 2005‒02‒01
four papers chosen by
Soumitra K Mallick
Indian Institute of Social Welfare and Bussiness Management

  1. Sovereign Debt, Volatility and Insurance By Kenneth Kletzer
  2. Wage and Benefit Changes in Response to Rising Health Insurance Costs By Dana Goldman; Neeraj Sood; Arleen Leibowitz
  3. Steming the Tide? The Effect of Expanding Medicaid Eligibility on Health Insurance By Lara D. Shore-Sheppard
  4. Fall Livestock Revenue Insurance, How Did It Perform? By May, Gary; Edwards, William M.; Lawrence, John D.

  1. By: Kenneth Kletzer (University of California Santa Cruz)
    Abstract: External debt increases the vulnerability of indebted emerging market economies to macroeconomic volatility and financial crises. Capital account reversals often lead sovereign debt repayment crises that are only resolved after prolonged and difficult debt restructuring. Foreign indebtedness exacerbates domestic financial distress in crisis, increasing both the incidence and severity of emerging market crises. These outcomes contrast with the presumption that access to international capital markets should help countries to smooth domestic consumption and investment against macroeconomic shocks. This paper uses models of sovereign to reconsider the role of sovereign debt renegotiation for international risk sharing and presents an approach for analyzing contractual innovations for implementing contingent debt repayments. The financial innovations that might allow risk-sharing rather than risk-inducing capital flows go beyond contractual changes that ease debt renegotiation by separating contingent payments from bonds.
    Date: 2004–10–01
  2. By: Dana Goldman; Neeraj Sood; Arleen Leibowitz
    Abstract: Many companies have defined-contribution benefit plans requiring employees to pay the full cost (before taxes) of more generous health insurance choices. Research has shown that employee decisions are quite responsive to these arrangements. What is less clear is how the total compensation package changes when health insurance premiums rise. This paper examines employee compensation decisions during a three-year period when health insurance premiums were rising rapidly. The data come from a single large firm with a flexible benefits plan wherein employees explicitly choose how to allocate compensation between cash wages and other benefits. Under such an arrangement, higher health insurance premiums must induce changes in the composition of total compensation%u2013either in lower after-tax wages or in decreased contributions to other benefits. The results suggest that about two-thirds of the premium increase is financed out of cash wages and the remaining one-thirds is financed by a reduction in benefits.
    JEL: J33
    Date: 2005–01
  3. By: Lara D. Shore-Sheppard
    Abstract: Despite considerable research, there is little consensus about the impact of Medicaid eligibility expansions for low-income children. In this paper, I reexamine the expansions' impact on Medicaid take-up and private insurance "crowd-out." Focusing on the most influential estimates of the expansions' impact, I show that while many of the critiques leveled at these estimates have little effect on their magnitude, accounting for age-specific trends in coverage produces estimates similar to others in the literature. Estimating the impact of later expansions using additional years of data, I find low rates of take-up and no evidence of crowding out.
    JEL: I1
    Date: 2005–01
  4. By: May, Gary; Edwards, William M.; Lawrence, John D.
    Date: 2003–07–03

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