Consumer Capital Market Constraints and Guaranteed Renewable Insurance

Kevin Frick

doi:10.1023/A:1007707103908

Consumer Capital Market Constraints and Guaranteed Renewable Insurance

Kevin Frick

Carey Business School

Research output: Contribution to journal › Article

Abstract

This paper analyzes a market in which individuals can purchase guaranteed renewable insurance policies to insure against the risk of loss in the current period and the risk of an increased probability of loss. Individuals who cannot borrow will purchase partially guaranteed renewable insurance at most. Relatively impatient individuals may purchase policies with no guaranteed renewability features. Without borrowing, the results are similar regardless of whether consumers can save.

Original language	English (US)
Pages (from-to)	271-278
Number of pages	8
Journal	Journal of Risk and Uncertainty
Volume	16
Issue number	3
DOIs	https://doi.org/10.1023/A:1007707103908
State	Published - Jan 1 1998

Keywords

Capital market constraints
Insurance
Renewability
Subjective rate of time preference

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

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Frick, K. (1998). Consumer Capital Market Constraints and Guaranteed Renewable Insurance. Journal of Risk and Uncertainty, 16(3), 271-278. https://doi.org/10.1023/A:1007707103908

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