Keyword: insurance
Covering Risk or Risky Behaviors? (7/27/2000)
The insurance solution to risky behaviors, such as smoking and underage driving, is to raise premium to discourage such behaviors and not to subsidize the treatment of such behaviors.
Crystal Ball (6/22/2006)
Better information on risky events may lead to market failure due to adverse selection.
Easy Money (12/21/2001)
If the insured takes less care to prevent loss, the insurer might be subject to unanticipated loss because of such moral hazard.
Free Riding on Preventive Health Care (8/16/2000)
Individual health insurers may be reluctant to aggressively offer smoking cessation treatment to their insured members because of high turnover of treated patients to other health insurers
Healthcare Tourism (3/7/2007)
Lower-pay certified doctors, duly accredited facilities, and 5-star facilities have contributed to the comparative advantage of overseas hospitals in non-emergency big-budget surgeries for international patients.
Risk Shifting (6/22/2006)
Defined-contribution pension plans increase labor mobility and facilitate the revival of old businesses in the face of massive industrial restructuring and longer life expectancy.
The Market Role of Information (7/7/2006)
Information or the lack of it may make or break a market.
The Sharing Economy (3/11/2014)
The peer-to-peer rental and sharing economy could lead to more efficient allocation of scarce resources and a cleaner economy.
Who Needs Casinos? (1/21/2010)
Unregulated credit default swaps (CDS) gave shaky coverage to subprime loans.