This paper investigates the effects of risk aversion on portfolio choices in terms of life insurance purchase and risky asset investment. The theoretical results show that households with very low degree of risk aversion allocate all of their investments to risky assets and have little desire to...

This article develops an equilibrium pricing model examining the nature of health insurance contracts by considering the relationship between information about risk types and equilibrium prices. Both community-rated (pooling) and risk-rated (separating) premia may co-exist under certain...