We provide a graphical illustration of how standard consumer and producer theory can be used to quantify the welfare loss associated with inefficient pricing in insurance markets with selection. We then show how this welfare loss can be estimated empirically using identifying variation in the...

Much of the extensive empirical literature on insurance markets hasfocused on whether adverse selection can be detected. Once detected, however, therehas been little attempt to quantify its welfare cost, or to assess whether and whatpotential government interventions may reduce these costs. To...

To overcome the problem of insufficient research and development (R&D) on vaccines for diseases concentrated in low-income countries, sponsors could commit to purchase viable vaccines if and when they are developed. One or more sponsors would commit to a minimum price that would be paid per...

The G8 is considering committing to purchase vaccines against diseases concentrated in low-income countries (if and when desirable vaccines are developed) as a way to spur research and development on vaccines for these diseases. Under such an advance market commitment, one or more sponsors would...

To overcome the problem of insufficient research and development (R&D) on vaccines for diseases concentrated in low-income countries, sponsors could commit to purchase viable vaccines if and when they are developed. One or more sponsors would commit to a minimum price that would be paid per...

This thesis examines the workings of insurance markets. The first two papers examine the effect of government tax and regulatory policy in markets for supplementary health insurance. The third paper presents new evidence of the importance of adverse selection in insurance markets. The first...