Garven, James R; Hilliard, James I; Grace, Martin F - In: The Geneva Risk and Insurance Review 39 (2014) 2, pp. 222-253
This paper looks for evidence of adverse selection in the relationship between primary insurers and reinsurers. We test the implications of a model in which informational asymmetry—and therefore, its negative consequences—decline over time. Our tests involve a data panel consisting of U.S....