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...

In spite of strong theoretical reasons to believe in the welfare-enhancing value of microinsurance products, demand for such products to date has been disappointingly low across a range of developing countries. In this paper we investigate the role of trust in the demand for indemnity insurance. First, we develop a theoretical model of insurance demand under limited trust to derive predictions ...

HIV/AIDS is a serious challenge to economic development. Increasing mortality and morbidity reduce living standards directly and have repercussions that affect all areas of the economy. Individuals and households face increasing risks, both directly through the risk of infection, and indirectly as formal and informal social insurance mechanisms are eroded. Companies face productivity losses and...

Deductibles in health insurance are often regarded as a means to contain health care costs when individuals exhibit moral hazard. However, in the absence of moral hazard, voluntarily chosen deductibles may instead lead to self-selection into different insurance contracts. We use a set of new variables in the German Socioeconomic Panel for the years 2002, 2004, and 2006 that measure individual h...

Deductibles in health insurance are often regarded as a means to contain health care costs when individuals exhibit moral hazard. However, in the absence of moral hazard, voluntarily chosen deductibles may instead lead to self-selection into different insurance contracts. We use a set of new variables in the German Socioeconomic Panel for the years 2002, 2004, and 2006 that measure individual h...

the purchase of insurance may cause the insureds to increase the costs of insurance companies, compared to their estimation of costs. if after the demand of insurance services, the loss ratio of insurance companies increases because of consumer behavior, moral hazard will be evident. in this paper, after introducing the literature, the presence of moral hazard in iran insurance company is teste...

In recent years the number of formal risk-sharing schemes for health care services in Ghana has risen rapidly. At present about 42 out of 110 districts are operating some form of formal community-based health insurance, which are voluntary and to a greater extent integrated to health care facilities. The success of these schemes depend largely on the extent to which they directly or indirectly ...