Economics of Insurance

Is a survey of the economics of insurance, with a special emphasis on empirical analysis of legal and policy issues. Broad issues to be covered include the basic economics of risk and the demand for insurance (what do we do choose to insure against and why); moral hazard and adverse selection in insurance markets, and strategies to deal with these problems; the economics of insurance for large risks (recessions, earthquakes, etc.); and the economics of social programs such as unemployment insurance. In addition to these broad issues, the course will also consider a number of special topic to which economics may have something useful to contribute, such as the uninsured motorist problem; per-mile pricing as an alternative for rate structure for automobile insurance; the control of discretion by insurance agents; optimum health insurance benefits, and the efficiency of tort liability insurance. The course assumes no prior background in economics or finance, but high school algebra and some comfort with numbers are important assets.

Course Schedule

  • Date: Monday 09:30-12:30AM
  • Location: LB422

Course Information

  • Catalog number-Section number: 837-01
  • Course Type: Lecture
  • Prerequisites: None
  • Credits (min/max): 3/3
  • Subjects:

Enrollment

  • Enrollment status: Open
  • Current enrollment/capacity: 13/18
  • Reserve population/capacity: 0/0
  • Waitlist enrollment/capacity: 0/20

Grading

  • Grade basis: Student option
  • Satisifies Writing Requirement: No
  • Exam type: NO EXAM