David de Meza

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    The insurance market and the failure to tell high from low risk

The insurance market and the failure to tell high from low risk

Is it really possible to tell if insurance markets are functioning effectively without too many high- or low-risk buyers of policies?

That is the challenge we address in our new research paper. The study suggests that standard tests for the twin phenomena of adverse and advantageous selection – too many or too few buyers who are likely to make a claim […]

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    Self-employment attracts people with an optimistic personality

Self-employment attracts people with an optimistic personality

Bearing in mind that only some 50 percent of businesses survive their first five years, what sort of person does it take to start one? The answer: an optimist. Still, other answers are possible. The returns to success may be so great that the gamble is worthwhile, especially as the autonomy experienced by entrepreneurs is part of the attraction. […]