Risk, Information and Insurance: Essays in the Memory of Karl H. Borch

274 Pages·1990·15.482 MB·English

by  Henri Loubergé (auth.), Professeur Henri Loubergé (eds.)

F
Risk, Information and Insurance
Sponsored by THE GENEVA ASSOCIATION
Risk, Information and Insurance
Essays in the Memory of Karl H. Borch
Edited by
Henri Louberge
~.
"
Kluwer Academic Publishers
Boston / Dordrecht / London
Distributors for North America:
Kluwer Academic Publishers
101 Philip Drive
Assinippi Park
Norwell, Massachusetts 02061 USA
Distributors for all other countries:
Kluwer Academic Publishers Group
Distribution Centre
Post Office Box 322
3300 AH Dordrecht. The Netherlands
Library of Congress Cataloging-in-Publication Data
Risk, information, and insurance: essays in memory of Karl
H. Borch/edited by Henri Louberge; sponsored by the
"Geneva Association".
p. cm.
Includes bibliographical references.
ISBN-13: 978-94-010-7478-0 e-ISBN-13: 978-94-009-2183-2
001: 10.1007/978-94-009-2183-2
1. Risk (Insurance) 2. Borch, Karl H. (Karl Henrik),
1919-1986. I. Borch, Karl H. (Karl Henrik), 1919-1986.
II. Louberge, Henri. III. International Association for the
Study of Insurance Economics.
HG80S4.S.RS5 1989
368--dc20 89-15600
CIP
Copyright © 1991 by Kluwer Academic Publishers, Second Printing 1991,
Softcover reprint of the hardcover 1st edition 1991
All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system or transmitted in any
form or by any means, mechanical, photocopying, recording,
or otherwise, without the prior written permission of the
publisher, Kluwer Academic Publishers, 101 Philip Drive,
Assinlppi Park, Norwell, Massachusetts 02061.
Contents
Contributing Authors vii
Foreword
Orio Giarini xi
1
Introduction
Henri Louberge
2
Borch's Theorem: A historical survey of applications
Jean Lemaire 15
Part I: Economics of Uncertainty
3
The role of securities and labor contracts in the optimal allocation
of risk-bearing
Jacques H. Dreze 41
4
Proportional risk aversion and saving decisions under uncertainty
Georges Dionne, Louis Eeckhoudt, and Eric Briys 67
Part II: Economics of Information
5
The welfare economics of moral hazard
Richard Arnott and Joseph Stiglitz 91
6
Problems of equilibria in insurance markets with asymmetric
information
Roland Eisen 123
7
Moral hazard and insurance market structure
Yoram Eden and Yehuda Kahane 143
8
The effects of organizational form on capital structure: The case of
stock and mutual property-liability insurance firms
Prabir Datta and Neil A. Doherty 165
Part III: Economics of Insurance
9
Strategic growth and profit policy of insurance companies
Dieter Farny 185
10
(De)regulation of insurance markets
Lutgart van den 8erghe 199
11
Price regulation and segmented insurance markets
J. Francois Outreville 221
12
The microstructure of the London insurance market
Robert L. Carter and Stephen R. Diacon 231
13
Do shares in other insurance companies reduce the solvency
margin of an insurer?
Walter Karten 257
Author Index 269
Subject Index 271
Contributing Authors
Professor Richard Arnott
Department of Economics
Boston College
Chestnut Hill, MA 02167, USA
Professeur Eric Briys
Centre HEC-ISA
Departement Finance
1, rue de la Liberation
F-78350 Jouy-en-Josas, France
Professor Robert L. Carter
The University of Nottingham
Depart. of Industrial Economics
University Park
GB-Nottingham NG7 2RD, United Kingdom
Professor Prabir Datta
226 Harvill
University of Arizona
Tucson, AZ 85721, USA
Professor Stephen R. Diacon
The University of Nottingham
Depart. of Industrial Economics
University Park
GB-Nottingham NG7 2RD, United Kingdom
Professeur Georges Dionne
Dep. de Sciences Economiques
Universite de Montreal
Case postale 6128, Succ. A
Montreal/Quebec H3C 3J7/Canada
VII
Vlll CONTRIBUTING AUTHORS
Professor Neil Doherty
University of Pennsylvania
Wharton School of Commerce
Department of Insurance
3641 Locust Walk CE
Philadelphia, PA 19104, USA
Professeur Jacques H. Dreze
Center for Operations Research
and Econometrics (CORE)
Universite Catholique de Louvain
34, Voie du Roman Pays
B-1348 Louvain-Ia-Neuve, Belgium
Professor Yoram Eden
Erhard Center
Tel Aviv University
Faculty of Management
P.O. Box 3901 0
Ramat Aviv, Tel Aviv, Israel
Professeur Louis Eeckhoudt
Universite Catholique de Mons
Faculte des Sciences Economiques
Chaussee de Binche 151
B-7000 Mons, Belgium
Prof. Dr. Roland Eisen
Johann-W. Goethe Universitat
Fachbereich Wirtschaftswissenschaften
Mertonstrasse 17
0-6000 Frankfurt-am-Main, West Germany
Prof. Dr. Dieter Farny
Institut fUr Versicherungswissenschaft
an der Universitat zu Kbln
Kerpener Strasse 30
0-5000 Kbln 41 (Lindenthal), West Germany
Professor Orio Giarini
The Geneva Association
18, chemin Rieu
CH-1208 Geneve, Switzerland
Professor Yehuda Kahane
Erhard Center
Tel Aviv University
Faculty of Management
P.O. Box 39010
Ramat Aviv, Tel Aviv, Israel
CONTRIBUTING AUTHORS IX
Professor Walter Karten
Universitat Hamburg
Ordinariat fOr Allg. Bwl. und
Versicherungsbetriebslehre
Von Melle Park 5
D-2 Hamburg 13, West Germany
Professor Jean Lemaire
Department of Insurance
University of Pennsylvania
The Wharton School of Commerce
3641 Locust Walk
Philadelphia, PA 19104, USA
Professeur Henri Louberge
Departement d'economie politique
Universite de Geneve
Case posta Ie 266
CH-1227 Carouge-Geneve, Switzerland
Professeur J.-Franc;ois Outreville
Programme special en assurance
CNUCED/UNCTAD
Palais des Nations
CH-1211 Geneve 10, Switzerland
Professor Joseph E. Stiglitz
Department of Economics
Stanford University
Stanford, CA 94305-6072, USA
Prof. Dr. Lutgart van den Berghe
De Vlerick School voor Management
Sint-Pietersnieuwstraat 184
B-9000 Gent, Belgium
Karl H. Borch
1919-1986