This paper analyzes price competition in the German motor insurance market since 1994 and looks for evidence to back up a claim frequently found in the trade literature—that there have been two recent price wars in this industry, the first in 1996–1999, the second in 2005–2006. In a first...

This paper analyzes the theoretical underpinnings of high-frequency repayment, a featurein nearly all microfi…nance contracts that has been largely overlooked by theorists. The pervasive belief among practitioners that frequent repayment is critical in achieving high repaymentrates is puzzling....

We use data from over 20,000 firms in 60 countries to identify constraints on the growth offirms. We interpret managers´ answers to survey questions on the extent to which variousaspects of their external environment inhibit the performance of their firm as measuring theshadow cost of...

A deferred annuity typically includes an option-like right for thepolicyholder. At the end of the deferment period, he may either choose toreceive annuity payouts, calculated based on a mortality table agreed to atcontract inception, or receive the accumulated capital as a lump sum.Considering...

We analyze the effect of enhanced annuities on an insurer engaging in individualunderwriting. We use a frailty model for the heterogeneity of the insured populationand model the individual underwriting by a random variable that positivelycorrelates with the corresponding frailty factor. For a...

Das Preis-Leistungs-Verhältnis herkömmlicher Rentenversicherungen steigt mitder Lebenserwartung des Versicherten. Derartige Produkte sind damit nur für Personen mit relativ hoher Lebenserwartung attraktiv. Der Nachteil für Versichertemit reduzierter Lebenserwartung wird durch steuerliche...

In comparing an immediate life annuity with a payout-equivalent investment fundpayout plan (self-annuitization), research to date has focused mainly on shortfallprobabilities of self-annuitization. As an exception, Schmeiser and Post (2005)propose a family strategy where the chances of...

This paper considers the statistical analysis of large panel data sets where even afterconditioning on common observed effects the cross section units might remain dependentlydistributed. This could arise when the cross section units are subject to unobserved commoneffects and/or if there are...

Microcredit is an innovative financial tool designed to reduce poverty and fix credit marketimperfections. We use experimental measures of time discounting and risk aversion forvillagers in south India to highlight behavioral features of microcredit. Conditional onborrowing from any source,...