We provide an experimental analysis of competitive insurance markets with adverse selection. Our parameterized version of the lemons’ model (Akerlof 1970) in the insurance context predicts total crowding out of low-risks when insurers offer a single full insurance contract. The therapy proposed by Rothschild and Stiglitz (1976) to solve this major inefficiency consists of adding a partial insur...

Unemployment insurance (UI) sanctions in the form of bene t reductions are intended to set disincentives for UI recipients to stay unemployed. Empirical evidence about the e ects of UI sanctions in Germany is missing. Using administrative data we investigate the e ects of sanctions on the reemployment probability in West Germany for a period before the Hartz reforms. By applying a matching appr...

In the 1980s, the federal government sponsored several field experiments to evaluate alternative approaches to reducing voluntary unemployment and improving the functioning of the unemployment insurance (UI) system. Four of these experiments involved the offer of bonuses to encourage more rapid return to work by UI recipients. Other experiments to enhance work search and to encourage self-emplo...

We estimate that Unemployment Insurance (UI) extensions reduce reemployment wages using sharp age discontinuities in UI eligibility in Germany. We show this effect combines two key policy parameters: the effect of UI on reservation wages and the effect of nonemployment durations on wage offers. Our framework implies if UI extensions do not affect wages conditional on duration, then reservation ...

Extensions of unemployment insurance (UI) benefits have been implemented in response to the Great Recession. This paper measures the effect of these extensions on the unemployment rate using a calibrated structural model featuring job search and consumption-saving decisions, skill depreciation, and UI eligibility. The ongoing UI benefit extensions are found to have raised the unemployment rate ...

We translate the results of the three reemployment bonus experiments that were conducted during the 1980s into (a) impacts of a 10-percentage point increase in the Unemployment Insurance (UI) replacement rate on the expected duration of unemployment; and (b) impacts of adding 1 week to the potential duration of UI benefits on the expected duration of unemployment. Our approach is to use an equi...

We study unemployment insurance (UI) in a general equilibrium environment in which unemployed workers only receive benefits for a finite length of time. Although all workers have identical productivity and leisure value, the random arrival of job offers creates ex-post differences with respect to their time remaining until benefit expiration. Firms, which are also homogenous, can exploit these ...

We present an economic model for decisions on competing cyber-security and cyber-insurance investment based the Gordon-Loeb in information security. consider a one-period scenario which firm may invest security measures to reduce probability of breach, or combination both. The optimal insurance under assumptions is investigated via consideration costs benefits alongside purchasing at independen...

In this paper, we define a tractable procedure to measure worker incomplete information in the labor market. The procedure, which makes use of earnings distribution skewness, is based on econometric frontier estimation techniques, and is consistent with search theory. We apply the technique to eleven countries over various years, and find that incomplete information leads workers to receive on ...

Cyber-infrastructures have transformed the practice of research. Researchers can now access distributed data worldwide with the help of cyber-infrastructures. User support services play an important role to facilitate researchers to accomplish their research goals with the help of cyber-infrastructures. However, the current user-support practices in cyberinfrastructures are not properly organiz...