This paper explains the decline in total fertility rate (TFR) in China by investigating the quantitative effect of social insurance on peoplesąŕ fertility choice when investment in children is risky. The price and income effects are heterogeneous: low-income people tend to raise more children due to the reinforcing income and price effects, whereas for rich families the income effect dominates ...

This thesis consists of three essays that examine investment choices in less developed countries. Chapter 1 examines how the structure of existing microfinance contracts may discourage risky but high-expected return investments. I develop a theory that unifies models of investment choice, informal insurance, and formal financial contracts and test the predictions using a series of experiments w...

We study capital management and investment decisions of a value-maximizing insurance firm with broad ownership base in discrete-time setting. highlight that the valuation measure used to determine value cash flows shareholders should reflect two economically sound requirements: market-consistency indifference idiosyncratic risk. provide rigorous construction this economic use it derive optimal ...