Private information and insurance rejections (Q2869953)

First of all the author presents a model of private information aimed at explaining how private information can cause insurance companies not to offer any contracts. Comparative statics and predictions of the model are given and the empirical methodology is properly investigated.NEWLINENEWLINEThen the problem is framed into three insurance market settings: long-term care, disability, life insurance. With reference to those settings, the author provides evidences consistent with the predictions of the theory.NEWLINENEWLINEThe results are set in the context of existing literature and further developments are discussed.