A clear understanding of what we know, don't know, and can't know should guide any reasonable approach to managing financial risk, yet the most widely used measure in finance today--Value at Risk, or VaR--reduces these risks to a single number, creating a false sense of security among risk...

If people take due care, they will not be found negligent under the Rule of Simple Negligence. Moreover, under this rule, investment in due care is privately and socially optimal. These results jointly imply that liability insurance should not exist. But it does. One explanation relies on errors...

This book offers a basic reference, new material and teaching supplements to graduate students and researchers in economics, finance and insurance. The book is divided into two main parts. Part I contains six survey articles on different subjects that represent significant developments over the...

Motor vehicle accidents are still a leading cause of death, even if the trend has somewhat declined over the past 20 years. Indeed, motor vehicle accidents are a significant cause of death in comparison with air and space transport accidents, homicides and even HIV infections, causes which are...

Part 1 History - Developments in risk and insurance economics: The past 50 years -- Part 2 Climate risk protection - Fifty years of US natural disaster insurance policy -- Climate risk and insurance -- Household financial resilience after severe climate events: The role of insurance -- Insuring...