WP 2019_03 The Behavioral Welfare Economics of Insurance

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Published in 2019 in The Geneva Risk and Insurance Review, Volume 44, Issue 2.

ABSTRACT: Behavioral economics poses a challenge for the welfare evaluation of insurance products and policy. It demands that we recognize that the descriptive account of behavior toward insurance depends on risk and time preferences that might… more »

WP 2019_02 Behavioral Insurance and Economic Theory: A Literature Review

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Published in 2019 in Risk Management & Insurance Review, Volume 22.

ABSTRACT: Decisions to purchase insurance should be a perfect place to see economic theory at work in general, and behavioral economics at work in particular. We have well‐developed theories of the demand for, and welfare evaluation of, insurance products.… more »

WP 2018-06 Eye-Tracking and Economic Theories of Choice Under Risk

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Forthcoming – Journal of the Economic Science Association

ABSTRACT: We examine the ability of eye movement data to help understand the determinants of decision making over risky prospects. We start with structural models of choice under risk, and use that structure to inform what we identify from the use of… more »

WP 2017_06 Behavioral Responses to Surveys About Nicotine Dependence

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Published in 2017 in Health Economics, Volume 26, Issue S3.

ABSTRACT: Behavioral responses to surveys can significantly affect inferences about population prevalence unless correctly modeled statistically. An important case study is the prevalence of nicotine dependence, a formal psychiatric disorder satisfying clinical criteria. Data from the National Epidemiologic Survey on Alcohol… more »

WP 2017_04 The Methodologies of Behavioral Econometrics

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Published in Contemporary Philosophy and Social Science: An Interdisciplinary Dialogue, edited by Michiru Nagatsu, and Attilia Ruzzene, London: Bloomsbury Publishing Plc, 2019.

ABSTRACT: Behavioral econometrics is one part of a methodological trinity that includes theory, data collection and econometrics. Sometimes, on a good methodological day, there are few demands on the… more »

WP 2017-03 Welfare Effects of Insurance Contract Non-Performance

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ABSTRACT: Non-performance lies at the heart of much of the regulation that insurance companies face. Consumers’ concerns about non-performance of the insurance provider have also been cited as a possible explanation for low demand of microinsurance. We provide a behavioral evaluation of the welfare effects of non-performance risk.… more »

WP 2017-02 Disordered Gambling Prevalence: Methodological Innovations in a General Danish Population Survey

*Note that this paper was previously listed as WP 2016-02 Gambling Problems in the General Danish Population: Survey Evidence, and then was inadvertently reposted as 2017-02. Both links should direct you to this page, and should there be any newer versions, we will update this page.

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Published in 2018 in Journal… more »

WP 2017-01 The Empirical Adequacy of Cumulative Prospect Theory and its Implications for Normative Assessment

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Published in 2017 in Journal of Economic Methodology, Volume 24, Number 2.

ABSTRACT: Much behavioral welfare economics assumes that expected utility theory (EUT) does not accurately describe most human choice under risk. A substantial literature instead evaluates welfare consequences by taking cumulative prospect theory (CPT) as the natural default alternative, at… more »

WP 2016-11 Once Bitten, Twice Shy: The Role of Inertia and Personal Experience in Risk Taking

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Published in 2019 in Journal of Financial Economics, Volume 132, Issue 3.

ABSTRACT: We study whether personal experiences are so powerful that they make individuals actively shy away from risk. Our research design relies on portfolio decisions relating to inheritances, which alter the active decision from one of choosing to take… more »

WP 2016-10 Fire Sales and House Prices: Evidence from Estate Sales due to Sudden Death

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Published in 2017 in Management Science, Volume 63, Number 1.

ABSTRACT: This study investigates when forced sales of real estate turn into fire sales by using a natural experiment which allows us to separate supply and demand effects: Forced sales result from sudden death of house owners and are thus unrelated… more »