This article uses the Over-lapping Generation model to study individuals' optimal decision on consumption, insurance, investment, and education expenses. We first discuss the individuals' demand for insurance considering intergenerational transfer payments and education expenses. We show that...

We develop a theoretical framework to analyze the relationship between jump risk management and firm value. By focusing on loss risk and insurance, we derive that insurance (or jump risk management) can significantly increase firm value. In addition, our work indicates that a firm would choose...

Using a proprietary data set of auto insurance claims from May 2014 to December 2016, this paper examines the influence of air pollution on the number and severity of traffic accidents in China. Combining an instrumental variable strategy with high-dimensional fixed effects, we find that air...

This paper analyzes the existing literature on the effect of attribute framing on consumers' attitudes and intentions with regard to food products. Attribute framing includes a broader interpretation of gains and losses when a product attribute is presented in a dichotomous way, such as fat vs....

In automobile insurance, the “contract timing effect” under Bonus-Malus System - there are fewer and fewer claims as time approaches to the end of a contract year - would bias the test of moral hazard. While the Expected Utility model cannot explain this phenomenon, we aim to unravel it by a...

Moral hazard is a critical issue in automobile insurance claiming behavior. However, empirical studies show that the "contract timing effect" - there are fewer and fewer claims as the time approaches to the end of each contract year - would bias the test of moral hazard under the Bonus-Malus...

This paper analyzes the existing literature on the effect of attribute framing on consumers' attitudes and intentions with regard to food products. Attribute framing includes a broader interpretation of gains and losses when a product attribute is presented in a dichotomous way, such as fat vs....

This paper studies sequential Bayesian persuasion games with multiple senders. We provide a tractable characterization of equilibrium outcomes. We apply the model to study how the structure of consultations affects information revelation. Adding a sender who moves first cannot reduce...

We study dynamic bargaining with uncertainty over the buyer's valuation and the seller's outside option. A long-lived seller makes offers to a long-lived buyer whose value is private information. There may exist a short-lived buyer whose value is higher than that of the long-lived buyer. The...