Brown Bag Seminar
The Finance Brown Bag Seminar is held jointly with the Vienna Graduate School of Finance (VGSF) and serves as a presentation platform for PhD students, faculty members, and visitors. It usually takes place on Wednesdays from 12:00 to 13:00 (location tba). For further information, please contact firstname.lastname@example.org
Winter Term 2018
October 23rd, 2018, 15:00-16:00, D4.4.008
Peter Zweifel (ETH Zurich)
Title: "Long-term care insurance: joint contracts for mitigating relational moral hazard"
Abstract: Recently, joint long-term care (LTC) insurance policies covering two related individuals have become available. This contribution purports to find out whether they have the potential of mitigating relational moral hazard (RMH) effects. For decades, intra-family moral hazard has been suspected of being responsible for the sluggish development of private LTC insurance. The parent, anticipating the informal care provided by the child that has the effect of lowering expenditure on formal LTC, is tempted to buy less LTC coverage. The child (or more generally, the partner of a senior person), knowing that the bequest is protected by LTC insurance, has less incentive to provide informal care. Moreover, the amount of LTC coverage bought by the partner is found to fall in response to that of the senior person. Since a joint LTC policy makes senior and partner decide simultaneously rather than sequentially, it may lead to a partial internalization of RMH by turning the amounts of LTC coverage into strategic complements, the amount of coverage whereas the two amount of coverage purchased by the senior and opf informal care provided by the junior continue to be strategic substitutes.
August 27th, 2018, 12:00-13:00, D4.0.019
Carlos Ramirez (Board of Governors of the Federal Reserve System)
Title: "Regulating Complex Financial Networks "
Abstract: This paper argues that the complexity of modern financial systems can greatly reduce the ability of policymakers to improve investors' welfare. Under some conditions, policymakers may be incapable of preventing large cascading failures. In other cases, they can significantly improve investors' welfare by imposing restrictions on a small set of institutions. Importantly, the size of that set is jointly determined by the costs of restricting institutions, investors' attitudes towards risk and ambiguity, and the knowledge available to policymakers about the underlying structure of such systems.