Jametti, Mario; Ungern-Sternberg, Thomas von - In: Journal of Institutional and Theoretical Economics (JITE) 166 (2010) 2, pp. 344-364
It is widely recognized that market failure prevents efficient risk sharing in natural-disaster insurance, leading to several public-private partnership arrangements across the globe. We argue that risk selection by the private partner is potentially an important issue. We illustrate our...