nep-ias New Economics Papers
on Insurance Economics
Issue of 2022‒04‒25
six papers chosen by
Soumitra K. Mallick
Indian Institute of Social Welfare and Business Management

  1. Medicaid Expansion Spillover Effects on Health Care Consumption and Coverage: Evidence from Medicare Administrative Data By Barkowski, Scott; Jun, Dajung; Zhang, Yuting
  2. Deposit Insurance in 2022: Global Trends and Key Emerging Issues By Van Roosebeke, Bert; Defina, Ryan
  3. Progressing Towards Efficiency: The Role for Labor Tax Progression in Reforming Social Security By Makarski, Krzysztof; Tyrowicz, Joanna; Komada, Oliwia
  4. Unemployment insurance and labour productivity over the business cycle By Rujiwattanapong, W. Similan
  5. COVID-19 and Covered Deposits By Van Roosebeke, Bert; Defina, Ryan
  6. Bivariate Distribution Regression with Application to Insurance Data By Yunyun Wang; Tatsushi Oka; Dan Zhu

  1. By: Barkowski, Scott; Jun, Dajung; Zhang, Yuting
    Abstract: The 2014 Medicaid expansion excluded Americans over 65, but they could still be affected via spillover effects. Using Medicare administrative data, we test for spillovers in Medicaid coverage and Medicare spending among Medicare beneficiaries. We analyze two separate birth cohorts: those under 65 in 2014, who could have been induced by the expansion to take up Medicaid before joining Medicare; and those 65 or older in 2014, whose Medicaid eligibility was never affected by the expansion. Our analysis shows that spillovers only flowed into the under-65 cohort, with Medicaid coverage increasing and average Medicare spending falling for this group, with little effect on health conditions. A lack of an effect on those over 65 in 2014 suggests Medicare beneficiaries were not crowded out of health care access by the expansion. Instead, those under 65 used Medicaid to satisfy “pent-up” demand, consuming care they would have otherwise consumed later under Medicare.
    Keywords: Health Insurance, Medicare, Medicaid expansion, ACA, spillovers
    JEL: I13 I18
    Date: 2022–03–02
  2. By: Van Roosebeke, Bert; Defina, Ryan
    Abstract: The IADI Deposit Insurance report provides, on a yearly basis, an overview of global trends in deposit insurance and investigates key emerging issues. This Report was edited by Bert Van Roosebeke and Ryan Defina of the IADI Secretariat Research Unit. IADI has identified the following five themes going forward: climate change; fintech; COVID-19; deposit insurers’ role in resolution; and cross border considerations. The report also highlighted many areas whereby deposit insurers are continuing to improve their overall compliance with the IADI Core Principles for Effective Deposit Insurance Systems.
    Keywords: deposit insurance; bank resolution; fintech; COVID-19
    JEL: G21 G33
    Date: 2022–02–18
  3. By: Makarski, Krzysztof (Warsaw School of Economics); Tyrowicz, Joanna (University of Warsaw); Komada, Oliwia (GRAPE)
    Abstract: We study interactions between progressive labor taxation and social security reform. Increasing longevity puts fiscal strain that necessitates the social security reform. The current social security is redistributive, thus providing (at least partial) insurance against idiosyncratic income shocks, but at the expense of labor supply distortions. A reform which links pensions to individual incomes reduces distortions associated with social security contributions, but incurs insurance loss. We show that the progressive labor tax can partially substitute for the redistribution in social security, thus reducing the insurance loss.
    Keywords: social security reform, labor income tax, redistribution, insurance, welfare effects
    JEL: C68 D72 E62 H55 J26
    Date: 2022–02
  4. By: Rujiwattanapong, W. Similan
    Abstract: This paper quantifies the effects of the increasing maximum unemployment insurance (UI) duration during recessions on the drop in the correlation between output and labour productivity in the U.S. since the early 1980s – the so-called productivity puzzle. Using a general equilibrium search and matching model with stochastic UI duration, heterogeneous match quality, variable search intensity and on-the-job search, I demonstrate that the model can explain over 40 percent of the drop in this correlation (28 percent when the Great Moderation is taken into account). More generous UI extensions during recent recessions cause workers to be more selective with job offers and lower job search effort. The former channel raises the overall productivity in bad times. The latter prolongs UI extensions since in the U.S. they are triggered by high unemployment.
    Keywords: business cycles; labour productivity; match quality; search and matching; unemployment insurance
    JEL: E24 E32 J24 J64 J65
    Date: 2021–09–15
  5. By: Van Roosebeke, Bert; Defina, Ryan
    Abstract: Understanding and managing the risks associated with COVID-19 is a priority area of concern for deposit insurers on a global basis. This paper investigates quarterly growth rates of covered deposits and finds statistically significant evidence that during the first six quarters of the pandemic, quarterly growth of covered deposits has shifted upwards by 1.5 %-points. On a per-quarter basis, we find evidence of statistically significant increases in the second half of 2020. Results are based on a September 2021 member survey conducted by the International Association of Deposit Insurers in conjunction with the State Corporation Deposit Insurance Agency (Russian Federation).
    Keywords: deposit insurance; COVID-19
    JEL: G21 G33
    Date: 2022–03–01
  6. By: Yunyun Wang; Tatsushi Oka; Dan Zhu
    Abstract: This article introduces an estimation method for the conditional joint distribution of bivariate outcomes, based on the distribution regression approach and the factorization method. The proposed method can apply for discrete, continuous or mixed distribution outcomes. It is semiparametric in that both marginal and joint distributions are left unspecified, conditional on covariates. Unlike the existing parametric approaches, our method is simple yet flexible to encapsulate distributional dependence structures of bivariate outcomes and covariates. Various simulation results confirm that our method can perform similarly or better in finite samples compared to the alternative methods. In an application to the study of a motor third-part liability insurance portfolio, the proposed method effectively captures key distributional features in the data, especially the value at risks conditional on covariates. This result suggests that this semiparametric approach can serve as an alternative in insurance risk management.
    Date: 2022–03

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