This paper demonstrates that informal care by family members significantly weakens the demand for long-term care insurance. This result is largely driven by the fact that insurance does not cover informal care costs. To quantify the effect of informal care on insurance demand and evaluate potential welfare-improving policies, I develop and estimate a dynamic model of long-term care decisions be...

This paper critically evaluates a recently introduced theory of the demand for health insurance. The new model makes a valuable contribution to the theoretical literature on moral hazard and the debate over national health insurance, but as a general explanation of the demand for health insurance it fails to provide a robust alternative to conventional theory. [

We propose two models to analyze welfare-maximizing capital requirements for insurance companies considering that capital is costly and therefore affecting the premium. Within a continuous-time model, we derive insurance demand and welfare as a function of personal wealth, the insurance company’s wealth, and the claims process, and compare them to their counterparts in a static model. Besides d...

This paper examines the characteristics that determine demand for micro-insurance when individuals have personal or observed experience with a rare weather event: the severe 2010 flooding in Pakistan. Using a sample of 384 individuals (192 in floodaffected and 192 non-affected villages matched using pre-flood propensity data), we combine post-flood survey data with behavioral experiments, to te...

Resolving the national debate on the affordability of health care is likely to turn, at least in part, on the question of how consumer demand for health insurance and health care services responds to changes in price or income. Estimates of responsiveness—measured as price and income elasticities—are often used to develop and analyze proposals to expand access to health insurance or constrain t...

Crop insurance is an appropriate way to overcome the risk in agricultural production sector and increase farmer’s peace of mind for their future income. In the agricultural sector of Kohgiluyeh and Boyer Ahmad, the risk of production is high due to the substantial losses of crops and other diseases and so is the income risk. Since most local farmers have low incomes and livelihoods, natural dis...

The indicators used in economics to calculate the productivity scale are not always positive, therefore, existing models need to be developed to calculate the productivity scale for the semi-negative and semi-positive output index. However, companies with a lack of capacity need to achieve economies of scale and demand for realization simultaneously in the presence of a negative outflow index, ...