information about disaster risk and set prices that accurately reflect the costs of insuring this risk. We use proprietary data on …

The purpose of this paper is to analyze an optimal pricing rule for the case in which the costs of price adjustment are … time dependent, and where those costs depend positively on the magnitude of the percentage price change. By means of … equilibrium level that would have obtained in the absence of costs of contemporaneous price adjustment. Under certain conditions …

The termination of a representative financial firm due to excessive leverage may lead to substantial bankruptcy costs … liquidation and the associated deadweight costs. It is shown that the optimal taxation policy to finance such transfers exhibits …

internalize the systematic risk costs they impose on their lenders. Because risk assessment techniques from the Basel II framework … increases in the leverage of firms, as well as a small increase in borrowing costs …

We show how standard consumer and producer theory can be used to estimate welfare in insurance markets with selection …. The key observation is that the same price variation needed to identify the demand curve also identifies how costs vary as …

whether premiums in the stand-alone drug plan markets are driven by the relevant factors predicted by insurance theory. Using …