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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.