The NOAA IR serves as an archival repository of NOAA-published products including scientific findings, journal articles, guidelines, recommendations, or other information authored or co-authored by NOAA or funded partners.
As a repository, the NOAA IR retains documents in their original published format to ensure public access to scientific information.
i
Moral hazard and selection bias in insurance markets: Evidence from commercial fisheries
-
2023
-
Source: Southern Economic Journal, 90(3), 682-700
[PDF-2.05 MB]
Details:
-
Journal Title:Southern Economic Journal
-
Personal Author:
-
NOAA Program & Office:
-
Description:Using a panel dataset of commercial fisheries in the Gulf of Mexico, we attempt to separately identify the moral hazard and self‐selection effects of property insurance coverage among commercial fishers. We use captains' propensity to take fishing trips under adverse weather conditions as a proxy for their private information; these data are available to us, but not to insurers. We find that vessels with higher long‐term exposure to risk are significantly less likely to be insured, suggesting potential advantageous selection. However, this relationship dissipates once we control for information likely known to the insurer. Finally, using a Heckit estimator, we find evidence of moral hazard: insured captains take more risks at sea.
-
Source:Southern Economic Journal, 90(3), 682-700
-
DOI:
-
ISSN:0038-4038;2325-8012;
-
Format:
-
Publisher:
-
Document Type:
-
License:
-
Rights Information:CC0 Public Domain
-
Compliance:Submitted
-
Main Document Checksum:
-
Download URL:
-
File Type:
