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Searched for Risk premium.
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Displaying results 1 to 10 of 51.

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  Press Releases // 10.09.2024

  ZEW Economist Friedrich Heinemann on Draghi’s Report on European Competitiveness

  create a European “safe asset”. However, it overlooks the fact that EU bonds trade at a significant risk premium compared to top-tier national issuers such as Germany or the Netherlands. This suggests that market [...] finances have an unfair advantage in the single market, distorting it. However, he barely addresses the risks posed by unsustainable public debt in highly indebted countries. This represents a problematic reversal
• Events // 06.05.2024

  Corporate Climate Lobbying

  future. Firms that spend more on anti-climate lobbying earn higher returns, probably because of a risk premium. Their stock prices went up when the Waxman-Markey Cap-and-Trade Bill failed, and down when the
• 

  News // 14.07.2023

  “Small Steps in the Right Direction”

  the right direction. The profit-independent premiums for green investments can help to master the energy transition. It’s a good thing that the investment premium, unlike immediate write-offs, also has a [...] Germany’s high corporate tax burden. Particularly for high-risk investments, it is noteworthy that the state’s increased involvement in investment risk through improved loss offsetting fosters a more symmetrical [...] should be noted that the future depreciation potential of the subsidised assets is reduced by the premium. For small and medium-sized enterprises, it may prove burdensome that they can only submit two a
• News // 20.07.2006

  ZEW President Wolfgang Franz on missed opportunities to reform Germany’s statutory health insurance

  meaningful way for the majority of patients. One such example, coverage for accidents resulting from high-risk sports, now requires voluntary supplementary insurance. The same should also be applied to companies’ [...] fixed amount to the SI for each policyholder, while additional payments are made to manage systemic risk. Should these payments to the health insurance provider not suffice, an income-based or a lump surcharge [...] cannot set competitive flat rates for all clients as originally intended. Furthermore, income-linked premium payments are liable to increase non-wage labour costs and encourage job cuts. The measures to fund
• Events // 05.12.2022

  Optimal Dynamic Insurance Contracts

  long-term contracting in insurance markets with asymmetric information. A buyer privately observes her risk type, which evolves stochastically over time. A long-term contract specifies a menu of policies contingent [...] contract offers in each period a choice between a perpetual complete coverage policy with fixed premium, and a risky continuation contract in which accidents affect within-period consumption (partial coverage)
• Publications // 30.11.2021

  ZEW Discussion Paper - Long-Term Health Insurance: Theory Meets Evidence

  insure policyholders against contemporaneous health expenditure shocks and future reclassification risk, long-term health insurance constitutes an alternative to community-rated short-term contracts with [...] real-world long-term health insurance markets. We first present and discuss insurer regulation, premium setting, and the main market principles of the GLTHI. Then, using unique claims panel data from 620
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  Press Releases // 28.04.2021

  ZEW Economist Heinemann on Growing Sovereign Debt in the Eurozone

  debt levels are accompanied by a persistent reform backlog. The ECB will not be able to keep the risk premiums of problem states artificially low in the long term either, because this would constitute a violation
• Events // 19.05.2020

  Basis Risk Effects on the Demand for Index Insurance Experimental Games with Colombian Coffee Growers

  insurance suffers from basis risk: the risk that indemnities are not recognized under the presence of yield losses. Although this does not prevent the correct design of a policy, basis risk is one of the main suspects [...] basis risk; this follows other results in the literature. The authors also find evidence of a positive effect on take-up when the level of non-insurable risk increases, another source of basis risk that [...] Index Insurance constitute an alternative to providing risk management to small agricultural producers. Its lower premium costs and immunity to moral hazard and adverse selection are advantages over
• Events // 30.04.2020

  Buying Data From Consumers The Impact of Monitoring in US Auto Insurance

  insurer, in which drivers accept short-term tracking in exchange for potential discounts on future premiums. They acquire a detailed proprietary dataset from the insurer and match it with competitor price [...] first quantify the degree to which monitoring incentivizes safer driving and allows more accurate risk-based pricing. They then model the demand and supply forces that determine the amount of information [...] demand for insurance and for monitoring; a dynamic pricing model links the firm’s information on driver risk to prices. They find large profit and welfare gainsfrom introducing monitoring. Safer drivers self-select
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  News // 05.12.2018

  How to Put E-Mobility on the Roads

  requirements that are hampered by trade barriers,” explained Fröhlich. With China being BMW’s largest premium market worldwide, and Great Britain the fourth largest sales market, setting up additional international [...] exorbitant price,” stressed Fröhlich. This is further aggravated by existing concerns and residual risks regarding electromobility. To counter these problems, Fröhlich plans to “emotionalise and regionalise”