Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5062516 | Economics Letters | 2007 | 6 Pages |
Abstract
Optimal actuarially fair coverage of insurance subject to default risk can be less or more than full, depending upon the relation between the recovery rate under default and a positive trigger level that is independent of the insured's risk preference.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Olivier Mahul, Brian D. Wright,