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Insurance, Prevention and Macroeconomics


  • Touze, V.


The purpose of this paper is to study the prevention impact upon the economic dynamics. We use an overlapping-generations model with production in which we have introduced a financial loss for households. This risk is endogenous and depends on the individual prevention levels. The dynamic paths are described either in an economy without insurance, or in an economy with insurance where the information is or is not perfect.

Suggested Citation

  • Touze, V., 1999. "Insurance, Prevention and Macroeconomics," Papers 99-25, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
  • Handle: RePEc:fth:pnegmi:99-25

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    References listed on IDEAS

    1. Daughety, Andrew F & Reinganum, Jennifer F, 1995. "Product Safety: Liability, R&D, and Signaling," American Economic Review, American Economic Association, vol. 85(5), pages 1187-1206, December.
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    4. Murphy, Kevin M. & Shleifer, Andrei, 1997. "Quality and trade," Journal of Development Economics, Elsevier, vol. 53(1), pages 1-15, June.
    5. repec:hrv:faseco:30722111 is not listed on IDEAS
    6. Bagwell, Kyle & Ramey, Garey, 1993. "Advertising as Information: Matching Products to Buyers," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 2(2), pages 199-243, Summer.
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    18. Bagwell, Kyle & Riordan, Michael H, 1991. "High and Declining Prices Signal Product Quality," American Economic Review, American Economic Association, vol. 81(1), pages 224-239, March.
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    20. Doughety, Andrew F & Reinganum, Jennifer F, 1997. "Everybody Out of the Pool: Products Liability, Punitive Damages, and Competition," Journal of Law, Economics, and Organization, Oxford University Press, vol. 13(2), pages 410-432, October.
    21. Carl Shapiro, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, Oxford University Press, vol. 98(4), pages 659-679.
    22. Steven Shavell, 1994. "Acquisition and Disclosure of Information Prior to Sale," RAND Journal of Economics, The RAND Corporation, vol. 25(1), pages 20-36, Spring.
    23. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
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    More about this item



    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • E00 - Macroeconomics and Monetary Economics - - General - - - General


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