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on Insurance Economics |
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Issue of 2016‒08‒07
eight papers chosen by Soumitra K. Mallick Indian Institute of Social Welfare and Business Management |
| By: | You, Jing; Wang, Shaoyang |
| Abstract: | We assess the unemployment duration-dependent impact of the 2008 Labor Contract Law on job finding probabilities and subsequently job-match quality, including job security, wages and employer-provided social insurance. Dynamic endogeneity underlying individuals’ sequential labor market outcomes is addressed by sharp regression discontinuity and correlated individual unobservables settling into non-parametric joint distribution. The law protracts employment only in the short-term. After job match, the law stabilizes employment and increases wages and insurance coverage, all in the short-term with substantial differences between urban locals and migrant workers and heterogeneity in gender. |
| Keywords: | unemployment, wage, social insurance, regression-discontinuity design, China |
| JEL: | C41 J64 J65 O53 |
| Date: | 2016–07–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:72767&r=ias |
| By: | Canta, Chiara; Cremer, Helmuth; Gahvari, Firouz |
| Abstract: | We study the role and design of private and public insurance programs when informal care is uncertain. Children's degree of altruism is represented by a parameter which is randomly distributed over some interval. The level of informal care on which dependent elderly can count is therefore random. Social insurance helps parents who receive a low level of care, but it comes at the cost of crowding out informal care. Crowding out occurs both at the intensive and the extensive margins. We consider two types of LTC policies. A topping up (TU ) scheme provides a transfer which is non exclusive and can be supplemented. An opting out (OO) scheme is exclusive and cannot be topped up. TU will involve crowding out both at the intensive and the extensive margins, whereas OO will crowd out solely at the extensive margin. However, OO is not necessarily the dominant policy as it may exacerbate crowding out at the extensive margin. Finally, we show that the distortions of both policies can be mitigated by using an appropriately designed mixed policy. |
| Keywords: | Long term care, uncertain altruism, private insurance, public insurance, topping up, opting out. |
| JEL: | H2 H5 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:30580&r=ias |
| By: | Marcus Dillender (W.E. Upjohn Institute for Employment Research); Karen Mulligan (Middle Tennessee State University) |
| Keywords: | health insurance, medicare, individual market, marriage, employer benefits, ACA |
| JEL: | H55 J32 |
| URL: | http://d.repec.org/n?u=RePEc:upj:weupjo:md-km&r=ias |
| By: | Luigi Pistaferri (Stanford University); Itay Saporta-Eksten (Tel Aviv University); Richard Blundell (University College London) |
| Abstract: | We consider the life-cycle problem of a household that in each period decides how much to consume and how to allocate spouses' time to work, leisure, and childcare. In an environment with uncertainty, the allocation of goods and time over the life cycle plays the further role of providing insurance against shocks. We use longitudinal data on consumption, and husband and wife separate information on hourly wages, hours of work, and time spent with children to estimate structural parameters measuring the sensitivity of consumption and time allocation choices to transitory and permanent wage shocks. These structural parameters provide a full picture regarding the ability of household to smooth marginal utility in response to shocks. In addition, information on hours of work and hours spent on childcare allows to decompose overall Frisch response into two components, one reflecting the degree of complementarity between husband's and wife's leisure ("companionship" or "love") and another reflecting the degree of substitutability of their childcare time in the production of childcare services. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed016:391&r=ias |
| By: | Anna L. Christensen; Dana M. Petersen; Rachel A. Burton; Vanessa C. Forsberg; Kelly J. Devers |
| Abstract: | The objective of this study was to describe factors that influence the ability of state Medicaid agencies to report the Centers for Medicare & Medicaid Services’ (CMS) core set of children’s health care quality measures (Child Core Set). |
| Keywords: | Quality measures , Medicaid , CHIPRA , Case study , Multiple-case study |
| JEL: | I |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:335300539cde4012aa7daab00b268e2e&r=ias |
| By: | Thomasz, Esteban Otto; Casparri, María Teresa |
| Abstract: | The aim of this work is to present an exploratory synthesis of international experience related to index-based insurance, in order to assess their potential applicability as adaptation to climate risk in the case of countries dependent of agriculture. It will attempt to define the particular engineering these instruments , define its main characteristics, identify their advantages and disadvantages compared to traditional insurance; and from the study of international experience analyze the feasibility of implementing this tool . This line of research aims to identify the challenges faced by countries in developing for the implementation of these instruments. |
| Keywords: | index-based insurance, climate risk, agriculture. |
| JEL: | G22 Q14 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:72690&r=ias |
| By: | Krueger, Dirk; Mitman, Kurt; Perri, Fabrizio |
| Abstract: | How big are the welfare losses from severe economic downturns, such as the U.S. Great Recession? How are those losses distributed across the population? In this paper we answer these questions using a canonical business cycle model featuring household income and wealth heterogeneity that matches micro data from the Panel Study of Income Dynamics (PSID). We document how these losses are distributed across households and how they are affected by social insurance policies. We find that the welfare cost of losing one's job in a severe recession ranges from 2% of lifetime consumption for the wealthiest households to 5% for low-wealth households. The cost increases to approximately 8% for low-wealth households if unemployment insurance benefits are cut from 50% to 10%. The fact that welfare losses fall with wealth, and that in our model (as in the data) a large fraction of households has very low wealth, implies that the impact of a severe recession, once aggregated across all households, is very significant (2.2% of lifetime consumption). We finally show that a more generous unemployment insurance system unequivocally helps low-wealth job losers, but hurts households that keep their job, even in a version of the model in which output is partly demand determined, and therefore unemployment insurance stabilizes aggregate demand and output. |
| Keywords: | great recession; Social Insurance; Wealth Inequality |
| JEL: | E21 E32 J65 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11413&r=ias |
| By: | Mathieu Cambou (Ecole Polytechnique Fédérale de Lausanne); Damir Filipović (Ecole Polytechnique Fédérale de Lausanne; Ecole Polytechnique Fédérale de Lausanne - Swiss Finance Institute) |
| Abstract: | The replicating portfolio (RP) approach to the calculation of capital for life insurance portfolios is an industry standard. The RP is obtained from projecting the terminal loss of discounted asset liability cash flows on a set of factors generated by a family of financial instruments that can be efficiently simulated. We provide the mathematical foundations and a novel dynamic and path-dependent RP approach for real-world and risk-neutral sampling. We show that the RP approach yields asymptotically consistent capital estimators. We illustrate the tractability of the RP approach by two numerical examples. |
| Keywords: | asset-liability portfolio, chaos expansion, replicating portfolio, solvency capital |
| JEL: | C61 C63 D81 G22 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp1625&r=ias |