The limits to local insurance
Milán Solé, Pau (Universitat Autònoma de Barcelona)
Gierlinger, Johannes (Universidad Carlos III de Madrid)

Imprint:	Barcelona: Barcelona School of Economics, 2022
Description:	59 pàg.
Abstract:	We study decentralized insurance when multiple risks are payoff-relevant, but each agent may only trade a (possibly different) subset of risks. Unless (at least) one agent can trade every risk, insurance markets remain incomplete, and the economy is not resilient to worst-case events. We also identify spill overs in any feasible allocation: others' inability to trade some risks restricts an agent's resilience to joint realizations. Unless an agent can trade a superset of i's risks, agent i is not resilient to them. In an application, we model constraints as risk-sharing networks and measure resilience in a Malawian village.
Grants:	Agencia Estatal de Investigación ECO2017-83534-P Agencia Estatal de Investigación PID2020-116771GB-I00 Agencia Estatal de Investigación CEX2019-000915-S
Note:	Altres ajuts: Comunidad Autónoma de Madrid EPUC3M11 (V PRICIT) ; H2019/HUM-5891
Rights:	Aquest material està protegit per drets d'autor i/o drets afins. Podeu utilitzar aquest material en funció del que permet la legislació de drets d'autor i drets afins d'aplicació al vostre cas. Per a d'altres usos heu d'obtenir permís del(s) titular(s) de drets.
Language:	Anglès
Series:	BSE Barcelona School of Economics Working Papers ; 1293
Document:	Working paper ; recerca ; Versió publicada
Subject:	Networks ; Market structure ; Incomplete markets ; Risk sharing

Adreça alternativa: https://bse.eu/research/working-papers/limits-local-insurance

59 p, 1.2 MB

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Research literature > Working papers