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on Insurance Economics |
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Issue of 2017‒05‒28
thirteen papers chosen by Soumitra K. Mallick Indian Institute of Social Welfare and Business Management |
| By: | Ramsey, Austin Ford; Santeramo, Fabio Gaetano |
| Abstract: | Recent changes in the Common Agricultural Policy have focused attention on the possibility of an enlarged crop insurance program in Europe. Several countries in the European Union already have national crop insurance schemes, but the performance of these programs in terms of realized demand has been low. In some cases, participation in the programs remains low in spite of significant subsidies to insurance premiums. This situation can be contrasted with the federal crop insurance program in the United States, which is now the principal instrument of American agricultural policy and insured over 366 million acres in 2015. We focus on two questions: are there any justifications for subsidized crop insurance and how could such a scheme possibly be implemented in the EU? Quantitative and qualitative comparisons of the current state of crop insurance in the EU and US serve to motivate our observations. |
| Keywords: | Crop Insurance, EU, USA, Insurance scheme |
| JEL: | D81 G22 Q18 |
| Date: | 2017–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:79164&r=ias |
| By: | Fredrick O. Wanyama; Anna McCord |
| Abstract: | Literature on social protection in Kenya shows progress in implementation of cash transfers but not the social health insurance scheme. With a dearth of explanation for this contrasting promotion of social protection, this paper examines the role of Kenya’s political settlement and the interests of donors. It argues that whereas the competitive clientelist political settlement is conducive to the supply-oriented cash transfer programmes, it is averse to the demand-oriented social health insurance scheme that requires clients to contribute and also threatens the market interests of donors. The paper therefore concludes that the scaling up of social protection is dependent on the convergence between the clientelist interests of politicians and the motivations of donors. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2017-114&r=ias |
| By: | Oana Peia (UCD - University College Dublin [Dublin]); Radu Vranceanu (THEMA - Théorie économique, modélisation et applications - Université de Cergy Pontoise - CNRS - Centre National de la Recherche Scientifique, Essec Business School) |
| Abstract: | This paper presents experimental evidence on depositor behavior under partial deposit insurance schemes. In the experiment, the size of a deposit insurance fund cannot fully cover all deposits and the level of insurance depends on the number of depositors running on the bank. We show that this form of strategic uncertainty about deposit coverage exerts a signi ficant impact on the propensity to withdraw, and results in a large frequency of bank runs. Runs are more likely when depositors have noisy information about the size of the insurance fund and as the maximum coverage increases, in line with a risk-dominant equilibrium selection mechanism. From a policy perspective, our results emphasize the limits of underfunded deposit insurance schemes in preventing systemic banking crises. |
| Keywords: | Bank runs,Deposit insurance,Risk dominance,Global games |
| Date: | 2017–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01510692&r=ias |
| By: | Ioana Popovici; Johanna Catherine Maclean; Michael T. French |
| Abstract: | Each year, 10,000 individuals die in alcohol-impaired traffic accidents in the United States, while psychoactive drugs are involved in 20% of all fatal traffic accidents. We investigate whether state parity laws for substance use disorder (SUD) treatment have the unintended benefit of reducing fatal traffic accidents. Parity laws compel insurers to cover SUD treatment in private insurance markets, thereby reducing the financial costs of and increasing access to treatment for beneficiaries. We employ over 20 years of administrative data from the national Fatal Accident Reporting System coupled with a differences-in-differences research design to investigate the potential spillover effects of parity laws to traffic safety. Our findings indicate that passage of a state parity law reduces fatal traffic accident rates by 4.1 to 5.4%. These findings suggest that government regulations requiring insurers to cover SUD treatment can significantly improve traffic safety, possibly by reducing the number of impaired drivers on roadways. |
| JEL: | I1 I13 I18 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23388&r=ias |
| By: | Le Barbanchon, Thomas; Rathelot, Roland; Roulet, Alexandra |
| Abstract: | Although the reservation wage plays a central role in job search models, empirical evidence on the determinants of reservation wages, including key policy variables such as unemployment insurance (UI), is scarce. In France, unemployed people must declare their reservation wage to the Public Employment Service when they register to claim UI benefits. We take advantage of these rich French administrative data and of a reform of UI rules to estimate the effect of the potential benefit duration (PBD) on reservation wages and on other dimensions of job selectivity, using a difference-in-difference strategy. We cannot reject that the elasticity of the reservation wage with respect to PBD is zero. Our results are precise and we can rule out elasticities larger than 0.006. Furthermore, we do not find any significant effects of PBD on the desired number of hours, duration of labor contract and commuting time/distance. The estimated elasticity of actual benefit duration with respect to PBD of 0.3 is in line with the consensus in the literature. Exploiting a regression discontinuity design as an alternative identification strategy, we find similar results. |
| Keywords: | reservation wage; Unemployment insurance |
| JEL: | J64 J65 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12030&r=ias |
| By: | Kevin Milligan; Tammy Schirle |
| Abstract: | Disability insurance take-up has expanded substantially in the past twenty years in the United States while shrinking in Canada. We empirically assess these trends by measuring the strength of the ‘push’ from weak labor markets versus the ‘pull’ of more generous benefits. Using an instrumental variables strategy comparing benefit changes across country, age, and year, we find that both benefits and regional wages matter. Simulations suggest that the upswing in disability insurance take-up in the United States would be reversed, dropping the caseload by one third, if benefits and wages had followed the growth path observed in Canada. |
| JEL: | H53 I38 J21 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23405&r=ias |
| By: | Korishchenko, Konstantin (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Shokin, Viktor (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Irmatova, Elnura (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Mikhailova, Nadezhda (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | State regulation of insurance in one form or another is realized in all countries of the world. Existing models are universal in terms of key parameters and at the same time differ in the details inherent in national regulatory systems. By now, economically developed countries have accumulated rich experience in state regulation of insurance market. In order to effectively develop the insurance market of the Russian Federation, it is efficient to consider the foreign experience of state regulation and to analyze the instruments used for the protection and development of the insurance market. For the purposes of this study, it is advisable to consider only some the principles of regulation, namely approaches to key aspects of state regulation related to admission to the market of foreign participants of the insurance market in relation to a single state, and the control for participants' operational, financial and Investment activity by the state insurance regulator. |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:051702&r=ias |
| By: | Marco Cozzi (Department of Economics, University of Victoria) |
| Abstract: | This paper is a quantitative, equilibrium study of the insurance role of severance pay when workers face displacement risk and markets are incomplete. A key feature of our model is that,in line with an established empirical literature, job displacement entails a persistent fall in earnings upon re-employment due to the loss of tenure. The model is solved umerically and calibrated to the US economy.In contrast to previous studies that have analyzed severance payments in the absence of persistent earning losses, we find that the welfare gains from the insurance against job displacement afforded by severance pay are sizable. |
| Keywords: | Severance Payments, Incomplete Markets, Welfare |
| JEL: | E24 D52 D58 J65 |
| Date: | 2016–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:vic:vicddp:1601&r=ias |
| By: | Laurie Felland; Peter Cunningham; Annie Doubleday; Cannon Warren |
| Abstract: | This study examines the early effects of the ACA on 10 safety net hospitals, both in states that expanded income eligibility for Medicaid under the ACA and those that did not. |
| Keywords: | Affordable care act, Safety Net Hospitals |
| JEL: | I |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:472e3c212adc4abd932380a8f2e07ce5&r=ias |
| By: | Rosemary Borck; Robert Schmitz; Pamela Doty; John Drabek |
| Abstract: | This study is a follow-up to earlier research conducted with 2006 and 2009 Medicaid (Medicaid Analytic eXtract [MAX]) data on interstate variations on the extent of the “rebalancing†of Medicaid long-term services and supports (LTSS) from nursing home care toward greater reliance on home and community-based services (HCBS). |
| Keywords: | Nursing home care, Medicaid enrollees, transition rates |
| JEL: | I J |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:d30fa020a06348118bbc91f8428043aa&r=ias |
| By: | Juan Carlos Conesa; Daniela Costa; Parisa Kamali; Timothy J. Kehoe; Vegard M. Nygard; Gajendran Raveendranathan; Akshar Saxena |
| Abstract: | This paper develops an overlapping generations model to study the macroeconomic effects of an unexpected elimination of Medicare. We find that a large share of the elderly respond by substituting Medicaid for Medicare. Consequently, the government saves only 46 cents for every dollar cut in Medicare spending. We argue that a comparison of steady states is insufficient to evaluate the welfare effects of the reform. In particular, we find lower ex-ante welfare gains from eliminating Medicare when we account for the costs of transition. Lastly, we find that a majority of the current population benefits from the reform but that aggregate welfare, measured as the dollar value of the sum of wealth equivalent variations, is higher with Medicare. |
| JEL: | E21 E62 H51 I13 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23389&r=ias |
| By: | Rozenn Hotte; Karine Marazyan |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:uds:wpaper:20170005&r=ias |
| By: | Morscher, Christof; Schlothmann, Daniel; Horsch, Andreas |
| Abstract: | Nachdem eine Bargeldabschaffung schon vor längerem u.a. von Wissenschaftsvertretern wie Rogoff, Summers und Bofinger diskutiert und im Ergebnis befürwortet wurde, scheint das Thema aufgrund aktueller Entwicklungen sowie bereits vollzogener Maßnahmen verstärkt in Wissenschaft und Praxis angekommen zu sein, wo es kontrovers diskutiert wird. Dabei werden sowohl für als auch gegen Abschaffung bzw. Beschränkung des Bargeldes gewichtige Gründe ins Feld geführt. Aufgrund der großen Aktualität und Relevanz der Thematik wird sie zuerst aus theoretischer Sicht beleuchtet, bevor empirische Entwicklungen aufgezeigt, sowie die gegensätzlichen Argumentationslinien der Befürworter und Gegner einer Abschaffung bzw. Beschränkung des Bargeldes sowie bereits veränderte institutionelle Rahmenbedingungen dargestellt und bewertet werden. |
| Keywords: | Bargeld,Geldfunktionen,Geldmengenabgrenzungen,Geldtheorie,Negativzinsen,Zahlungsgewohnheiten,cash,functions of money,money aggregates,money theory,negative interest rates,payment methods |
| JEL: | D11 D61 E41 E42 G21 O33 O52 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tufwps:201701&r=ias |