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Pierre-Andre Chiappori

Pierre-André Chiappori is Professor of Economics at Columbia University.

Titles by This Editor

Theory and Policy Implications

Risk sharing is a cornerstone of modern economies. It is valuable to risk-averse consumers and essential for investment and entrepreneurs. The standard economic model of risk exchange predicts that competition in insurance markets will result in all individual risks being insured--that all diversifiable risks in the economy will be covered through mutual risk-sharing arrangements--but in practice this is not the case. Many diversifiable risks are still borne by individuals; many environmental, catastrophic, and technological risks are not covered by insurance contracts.