tag:blogger.com,1999:blog-5404820640426099135.post1310556194729128547..comments2023-10-31T00:46:35.316+13:00Comments on Anti-Dismal: Market failure (updated)Paul Walkerhttp://www.blogger.com/profile/13731003529546075700noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5404820640426099135.post-13966713152144524592009-01-25T15:37:00.000+13:002009-01-25T15:37:00.000+13:00Great post, Paul!I'd also recommend the propitious...Great post, Paul!<BR/><BR/>I'd also recommend the propitious selection argument advanced by Hemenway. Long story short, more risk-averse people buy MORE insurance than risk-lovers. See Hemenway's original piece <A HREF="http://www.springerlink.com/content/q454x21j702x1080/" REL="nofollow">here</A> and a nice follow-up <A HREF="http://ideas.repec.org/p/ctl/louvec/2006017.html" REL="nofollow">here</A>.Eric Cramptonhttps://www.blogger.com/profile/15831696523324469713noreply@blogger.com