How do We Insure People with Multiple Sources of Risks? (Multiple sources of risk)
This project seeks to contribute to the academic and policy discussions about how society should manage risks by theoretically characterizing and empirically identifying optimal insurance schemes for people facing multiple risks. I propose two studies: one focused on households and one on individuals. In project #1 I will study the structure of the unemployment insurance scheme most preferred by households and analyze how this varies according to the type of bargaining process households use to make choices. In project #2 I will study optimal insurance schemes for individuals with several risks and how this is affected by the non-trivial tradeoffs people are willing to make between risk domains.