In this article, we discuss whether and when the risk taking and moral hazard is beneficial to the insured and to the society as well. We establish model by stochastic optimal control theory. We obtain the optimal levels of risk taking and moral hazard from perspectives of the insured and the...

We discuss the risk-based valuation model for deposit insurance. We establish models of determining the premium rate of deposit insurance considering the deductibles, the investment activities of the deposit insurer, and the requirements of capital regulation. Based on the criterion of safety...

We construct panel data on house prices and the determined cause of 4.8 million individual fires in the United States between 1986 and 2010 to test whether decreases in local housing market prices coincided with increases in arson. Since some insured homeowners may attempt to disguise the actual...