Excerpt
Excerpt
Private Information and Unemployment Insurance. Nathaniel Hendren, July 19, 2015, Paper. "I provide empirical evidence that private information limits the ability to insure the risk of job loss in private markets, and analyze the implications of this micro-foundation for normative analysis of optimal unemployment insurance. Using information contained in subjective probability elicitations, I show individuals have significant information about their chances of losing their job conditional on a wide range of observable information insurers could potentially use to price the insurance. I derive lower bounds that suggest individuals would need to be willing to..." Link