Testing for asymmetric information in insurance markets has become a very important issue in the empirical literature in the last years. We analyze the (private) accident insurance, which has not been analyzed before in the literature, but covers one of the most important risks faced by...

type="main" xml:lang="en" <title type="main">Abstract</title> <p>Asymmetric information is an important phenomenon in insurance markets, but the empirical evidence on the extent of adverse selection and moral hazard is mixed. Because of its implications for pricing, contract design, and regulation, it is crucial to test for...</p>

Since Chiappori and Salanié, testing for asymmetric information has become tantamount to testing for a positive relation between risk and coverage which is predicted by (equilibrium) models for adverse selection and moral hazard. In this paper we review parametric tests and a recently developed...

Asymmetric information is an important phenomenon in many markets and in particular in insurance markets. Testing for asymmetric information has become a very important issue in the literature in the last two decades. Almost all testing procedures that are used in empirical studies are...