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...

In this paper, we show that conventional heteroskedasticity and autocorrelation robust inference procedures based on the reduced form provide tests and confidence intervals for structural parameters that are valid when instruments are strongly or weakly correlated to the endogenous variables.