| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w9957 |
| 来源ID | Working Paper 9957 |
| Private Information and its Effect on Market Equilibrium: New Evidence from Long-Term Care Insurance | |
| Amy Finkelstein; Kathleen McGarry | |
| 发表日期 | 2003-09-08 |
| 出版年 | 2003 |
| 语种 | 英语 |
| 摘要 | This paper examines the standard test for asymmetric information in insurance markets: that its presence will result in a positive correlation between insurance coverage and risk occurrence. We show empirically that while there is no evidence of this positive correlation in the long-term care insurance market, asymmetric information still exists. We use individuals' subjective assessments of the chance they will enter a nursing home, together with the insurance companies' own assessment, to show that individuals do have private information about their risk type. Moreover, this private information is positively correlated with insurance coverage. We reconcile this direct evidence of asymmetric information with the lack of a positive correlation between insurance coverage and risk occurrence by demonstrating the existence of other unobserved characteristics that are positively related to coverage and negatively related to risk occurrence. Specifically, we find that more cautious individuals are both more likely to have long-term care insurance and less likely to enter a nursing home. Our results demonstrate that insurance markets may suffer from asymmetric information, and its negative efficiency consequences, even if those with more insurance are not higher risk. The results also suggest an alternative approach to testing for asymmetric information in insurance markets. |
| 主题 | Microeconomics ; Economics of Information ; Financial Economics ; Financial Institutions |
| URL | https://www.nber.org/papers/w9957 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/567582 |
| 推荐引用方式 GB/T 7714 | Amy Finkelstein,Kathleen McGarry. Private Information and its Effect on Market Equilibrium: New Evidence from Long-Term Care Insurance. 2003. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w9957.pdf（461KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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