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on Insurance Economics |
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Issue of 2008‒12‒07
three papers chosen by Soumitra K Mallick Indian Institute of Social Welfare and Bussiness Management |
| By: | Jean Pinquet (LEEP - Laboratoire d'econometrie de l'école polytechnique - CNRS : UMR7657 - Polytechnique - X); Guillén Montserrat (LEEP - Laboratoire d'econometrie de l'école polytechnique - CNRS : UMR7657 - Polytechnique - X) |
| Abstract: | This paper analyzes the rationale of long-term care insurance purchasing, from a statistical analysis of insurance data and a life cycle model. We make a short survey of the pros and cons of LTC insurance purchase. Then risk distributions in the occurrence and duration dimension are estimated on a Spanish portfolio. Calendar effects are estimated besides age and gender. These statistical results are integrated in a life cycle model of savings and insurance purchasing. A numerical illustration is also provided, which leads to an optimal age of forty years for insurance purchase. |
| Keywords: | Long-term care insurance; Lee-Carter models; life cycle approach; calendar, gender and age effects |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00343104_v1&r=ias |
| By: | Stephane Pallage (Universite du Quebec a Montreal); Lyle Scruggs (University of Connecticut); Christian Zimmermann (University of Connecticut) |
| Abstract: | In this paper, we develop a methodology to summarize the various policy parameters of an unemployment insurance scheme into a single generosity parameter. Unemployment insurance policies are multdimensional objects. They are typically defined by waiting periods, eligibility duration, benefit levels and asset tests when eligible, which makes intertemporal or international comparisons difficult. To make things worse, labor market conditions, such as the likelihood and duration of unemployment matter when assessing the generosity of different policies. We build a first model with such complex characteristics. Our model features heterogeneous agents that are liquidity constrained but can self-insure. We then build a second model that is similar, except that the unemployment insurance is simpler: it is deprived of waiting periods and agents are eligible forever with constant benefits. We then determine which level of benefits in this second model makes agents indifferent between both unemployment insurance policies. We apply this strategy to the unemployment insurance program of the United Kingdom and study how its generosity evolved over time. |
| Keywords: | unemployment insurance, labor market policy, measurement |
| JEL: | J65 E24 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:uct:uconnp:2008-42&r=ias |
| By: | Stephane Pallage (Universite du Quebec a Montreal); Lyle Scruggs (University of Connecticut); Christian Zimmermann (University of Connecticut) |
| Abstract: | The goal of this paper is to establish if unemployment insurance policies are more generous in Europe than in the United States, and by how much. We take the examples of France and one particular American state, Ohio, and use the methodology of Pallage, Scruggs and Zimmermann (2008) to find a unique parameter value for each region that fully characterizes the generosity of the system. These two values can then be used in structural models that compare the regions, for example to explain the differences in unemployment rates. |
| Keywords: | unemployment insurance, labor market policy, measurement, France |
| JEL: | J65 E24 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:uct:uconnp:2008-43&r=ias |