363-1017-00L Risk and Insurance Economics
|Semester||Spring Semester 2017|
|Language of instruction||English|
|Abstract||The course covers economics of risk and insurance. Topics covered are fundamentals of insurance, risk measures and risk management, demand and supply of insurance and asymmetric information in insurance markets.|
|Objective||The goal is to introduce students to basic concepts of risk, risk management and economics of insurance.|
|Content||- fundamentals of insurance |
- what is the rationale for corporate risk management?
- measures of risk and methods of risk management
- demand for insurance
- supply of insurance
- information problems in insurance markets: moral hazard, adverse selection, fraud
|Literature||- Peter Zweifel and Roland Eisen (2012), Insurance Economics, Springer. |
- S. Hun Seog (2010), The Economics of Risk and Insurance, Wiley-Blackwell.
- Ray Rees and Achim Wambach (2008), The Microeconomics of Insurance, Foundations and Trends in Microeconomics: Vol. 4: No 1-2.
- Eeckhoudt/Gollier/Schlesinger (2007), Economic and Financial Decisions under Risk, Princeton University Press.
- introductory background reading: Harrington/Niehaus (2003), Risk Management and Insurance, McGraw Hill.