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on Insurance Economics |
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Issue of 2017‒12‒18
nine papers chosen by Soumitra K. Mallick Indian Institute of Social Welfare and Business Management |
| By: | Joelle Abramowitz |
| Abstract: | This paper investigates the effect of the Affordable Care Act young adult provision on fertility and related outcomes. The expected effect of the provision on fertility is not clear ex ante. By expanding insurance coverage to young adults, the provision may affect fertility directly through expanded options for obtaining contraceptives as well as through expanded options for obtaining pregnancy-, birth-, and infant-related care, and these may lead to decreased or increased fertility, respectively. In addition, the provision may also affect fertility indirectly through marriage or labor markets, and the direction and magnitude of these effects is difficult to determine. This paper considers the effect of the provision on fertility as well as the contributing channels by applying difference-in-differences-type methods using the 2008-2010 and 2012-2013 American Community Survey, 2006-2009 and 2012-2013 Centers for Disease Control and Prevention abortion surveillance data, and 2006-2010 and 2011-2013 National Survey of Family Growth. Results suggest that the provision is associated with decreases in the likelihood of having given birth and abortion rates and an increase in the likelihood of using long-term hormonal contraceptives. |
| Keywords: | Fertility, Affordable Care Act, Young Adult Provision, Health Insurance |
| JEL: | I12 I13 I18 J13 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:17-65&r=ias |
| By: | Sadeghi Shahedani, Mehdi; Askari, Mohammad Mahdi; Maleki Nejad, Amir |
| Abstract: | Insurance is among the most important tools that have been devised to prepare readiness for dealing with threats. These valuable man-made tools with their capabilities have controlled many undesirable effects of unforeseen events. In each country, growth and development of insurance industry is considered as an indicator for evaluating the level of development. From the perspective of insurers, the risks of energy, especially the oil and gas industry, are known as high risks. Economic feasibility of the profitability of insurance related to oil and gas wells is the aim of this study that was performed through damage coefficient indicators and profit margin with scenario planning using engineering economics method. The results of this research indicate that the damage coefficient of this field of insurance is much lower than the whole insurance industry and have a suitable and very high profit margin. Therefore, due to the low damage coefficient and high profit margin and the stability of these types of insurance, their profitability is confirmed economically and investment and providing insurance coverage is adequately justifiable for these types of risk. |
| Keywords: | economic feasibility, profit margin, insurance, oil and gas wells. |
| JEL: | G22 P48 |
| Date: | 2017–08–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:83151&r=ias |
| By: | Vicky Barham (University of Ottawa, ON, Canada); Hana Bataineh (University of Ottawa, ON, Canada); Rose Anne Devlin (University of Ottawa, ON, Canada) |
| Abstract: | Objective; To examine the causal effect of health care utilization on unmet health care needs. Methods; An instrumental variables approach deals with the endogeneity between the use of health care services and unmet health care. The presence of drug insurance and the number of physicians in each health region are used to identify the causal effect. The reasons for unmet health care needs are grouped into system and personal ones. We use four biennial confidential master files (2001-2010) of the Canadian Community Health Survey. Results; We find a clear and robustly negative relationship between health care use and unmet health care needs; a higher probability of unmet health care needs is attributable to a low use of health care services. One more visit to a medical doctor on average decreases the probability of having unmet health care needs by 0.028 points. If the unmet need is due to accessibility related reasons, this effect is 0.02 compared to only 0.015 point for personal related reasons. Conclusion; Health care use reduces the likelihood of reporting unmet health care. That the link between health care utilization and unmet health care needs is stronger for accessibility related reasons than for personal reasons, suggests that policies like increasing the coverage of public drug insurance, and increasing the number of physicians can reduce the likelihood of unmet health care. |
| Keywords: | Unmet health care needs; Health care utilization; Instrumental Variables (IV); Canada. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ott:wpaper:1716e&r=ias |
| By: | Laura Blue; Lakhpreet Gill; Jessica Faul; Kevin Bradway; David Stapleton |
| Abstract: | This study assesses how well physiological markers, including select biomarkers and genetic indicators, predict benefits receipt under Social Security Disability Insurance or Supplemental Security Income due to disability. The article appears in the Journal of Aging and Health. |
| Keywords: | biomarkers, genetics, disability, Social Security Disability Insurance, Health and Retirement Study |
| JEL: | I J |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:1892ab75953c4395ae7f5ce81fcd4100&r=ias |
| By: | Rodolfo Manuelli (Washington University and Federal Reserve Bank of St. Louis) |
| Abstract: | In this paper we develop a continuous time stochastic growth model that is suitable for studying the impact of natural disasters on the short run and long run growth rate of an economy. We find that the growth effects of a natural disaster depend in complicated ways on the details of expected foreign disaster aid and the existence of catastrophe insurance markets. We show that disaster aid can delay recovery. We also show that access to catastrophe insurance can reduce investment in prevention and mitigation activities. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed017:1118&r=ias |
| By: | James D. Reschovsky; Eugene C. Rich |
| Abstract: | In this issue of JAMA Internal Medicine, Landon and colleagues apply claims-based algorithms to identify and describe physician networks. |
| Keywords: | Delivery system, market factors, physician networks, patient care |
| JEL: | I |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:606b14c4b9a545379e2917b54eb96442&r=ias |
| By: | Zbigniew Palmowski; Joanna Tumilewicz |
| Abstract: | In this paper, we analyse some equity-linked contracts that are related to drawdown and drawup events based on assets governed by a geometric spectrally negative L\'evy process. Drawdown and drawup refer to the differences between the historical maximum and minimum of the asset price and its current value, respectively. We consider four contracts. In the first contract, a protection buyer pays a premium with a constant intensity $p$ until the drawdown of fixed size occurs. In return, he/she receives a certain insured amount at the drawdown epoch, which depends on the drawdown level at that moment. Next, the insurance contract may expire earlier if a certain fixed drawup event occurs prior to the fixed drawdown. The last two contracts are extensions of the previous ones but with an additional cancellable feature that allows the investor to terminate the contracts earlier. In these cases, a fee for early stopping depends on the drawdown level at the stopping epoch. In this work, we focus on two problems: calculating the fair premium $p$ for basic contracts and finding the optimal stopping rule for the polices with a cancellable feature. To do this, we use a fluctuation theory of L\'evy processes and rely on a theory of optimal stopping. |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1712.04418&r=ias |
| By: | Cubas, German; Silos, Pedro |
| Abstract: | This paper studies how insurance from progressive taxation improves the matching of workers to occupations. We propose an equilibrium dynamic assignment model to illustrate how social insurance encourages mobility. Workers experiment to find their best occupational fit in a process filled with uncertainty. Risk aversion and limited earnings insurance induce workers to remain in unfitting occupations. We estimate the model using microdata from the United States and Germany. Higher earnings uncertainty explains the U.S. higher mobility rate. When workers in the United States enjoy Germany’s higher progressivity, mobility rises. Output and welfare gains are large. |
| Keywords: | Progressive Taxation, Social Insurance, Occupational Choice |
| JEL: | E21 H24 J31 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:83020&r=ias |
| By: | Alexandros Theloudis (Luxembourg Institute for Socio-Economic Research (LISER) and Department of Eco- nomics, University College London) |
| Abstract: | This paper studies the transmission of wage shocks into consumption across families that exhibit unobserved preference heterogeneity. Heterogeneity and preferences over consumption and family labor supply are nonparametric. I show that any moment of the joint distribution of policy-relevant wage elasticities of consumption and labor supply is identified separately from the distributions of incomes and outcomes. I decompose consumption inequality into components pertaining to wage inequality, preference heterogeneity and heterogeneity in wealth, and I show that preference heterogeneity always increases consumption inequality. To illustrate these points empirically, I fit second and third moments of consumption, earnings and wages in the PSID. I find that: (i) the distributions of permanent and transitory wage shocks exhibit strong negative skewness; (ii) there is substantial heterogeneity in consumption elasticities but not in elasticities of labor supply; (iii) consumption is on average fully insured against transitory shocks but tracks permanent shocks much more closely than previously found; moreover, there is substantial heterogeneity in the response of consumption to such shocks involving both the magnitude and the sign of the response; (iv) preference heterogeneity accounts for up to 58\% of consumption inequality in the US since 1999. Seen together, these results suggest that preference heterogeneity has substantial implications for consumption inequality and partial insurance. |
| Keywords: | unobserved preference heterogeneity, consumption inequality, family labor sup- ply, wage shocks, lifecycle model, liquidity constraints, adjustment costs, PSID. |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2017-451&r=ias |