363-1017-00L Risk and Insurance Economics
|Semester||Spring Semester 2016|
|Periodicity||yearly recurring course|
|Language of instruction||English|
|Abstract||The course covers economics of risk management and insurance. Main topics are risk measures and risk management methods, supply and demand of insurance, asymmetric information in insurance markets and insurance regulation.|
|Objective||The goal is to introduce students to basic concepts of risk, risk management and economics of insurance.|
|Content||- what is the rationale for risk management?|
- measures of risk and methods of risk management
- demand and supply of insurance
- information problems in insurance markets: moral hazard, adverse selection, fraud
- insurance regulation
|Literature||- 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.