http://hdl.handle.net/10398/8463 2013-05-24T07:59:19Z 2013-05-24T07:59:19Z Hansen, Jan V. Højbjerg Jacobsen, Rasmus Lau, Morten I. http://hdl.handle.net/10398/8538 2012-10-15T08:54:36Z 2012-10-08T00:00:00Z

Willingness to Pay for Insurance in Denmark Hansen, Jan V.; Højbjerg Jacobsen, Rasmus; Lau, Morten I. We estimate the maximum amount that Danish households are willing to pay for three different types of insurance: auto, home and house insurance. We use a unique combination of claims data from the largest private insurance company in Denmark, measures of individual risk attitudes and discount rates from a field experiment with a representative sample of the adult Danish population, and information on household income and wealth from registers at Statistics Denmark. We assume that households maximize expected inter-temporal utility subject to an inter-temporal budget constraint with several possible states of nature, where all uncertainty is realized in the initial period and any loss incurred by an accident is subtracted from initial wealth. The estimated willingness to pay is based on annual claims and should thus be considered as an annual premium. Since there is some uncertainty about the estimates of risk attitudes and discount rates, there is some uncertainty about the estimated willingness to pay. We use a randomized factorial design in our sensitivity analysis where each simulation involves a random draw from independent normal distributions of the estimated risk and time preferences. The results show that the willingness to pay is marginally higher than the actuarial fair value under Expected Utility Theory. However, the estimated willingness to pay is significantly higher under Rank-Dependent Utility Theory, and for some households it may be up to 600% higher than the actuarial value of the insurance claims.

2012-10-08T00:00:00Z Fosse, Henrik Barslund Maitra, Madhura http://hdl.handle.net/10398/8540 2012-10-15T08:59:00Z 2012-10-08T00:00:00Z

Import, Offshoring and Wages Fosse, Henrik Barslund; Maitra, Madhura Offshoring firms are found to pay higher average wages than purely domestic firms. We provide a unifying empirical approach by capturing the different channels through which offshoring may explain this wage difference: (i) due to change in the composition of workers (skill composition effect) (ii) because all existing workers get higher pay (rent sharing effect). Using Danish worker-firm data we explain how much each channel contributes to higher wages. To estimate the causal effect of offshoring on wages we use China’s accession to the WTO in December 2001 - and the soon after boom in Chinese exports - as positive exogenous shocks to the incentive to offshore to China. Both skill composition and rent sharing effects are found to be important in explaining the resultant gain in wages. We also show that the firm’s timing in the offshoring process determines the relative importance of a channel. For firms offshoring to China in 2002 but not in 1999, only rent sharing explains the gain in wages. For firms offshoring to China both before and after China’s WTO accession the wage increase is explained mostly by the skill composition effect. Moreover, these patterns are not discernible from the measures of skill composition and rent sharing available in typical firm level datasets - like ratio of educated to uneducated workers and sales per employee.

2012-10-08T00:00:00Z Fosse, Henrik Barslund http://hdl.handle.net/10398/8539 2012-10-08T13:33:23Z 2012-11-08T00:00:00Z

Exporter Price Response to Exchange Rate Changes Fosse, Henrik Barslund Firms exporting to foreign markets face a particular challenge: to price their exports in a foreign market when the exchange rate changes. This paper takes on pricing- to-market using a unique data set that covers rm level monthly trade at great detail. As opposed to annual trade ows, monthly trade ows bring us closer to the transaction level where rm decisions are actually made. I nd that the utilization of monthly data does add new information about the average level of pricing-to-market, and the di¤erences between long-run pricing-to-market and short-run pricing-to-market. Furthermore, I nd industry di¤erences in pricing-to-market in terms of the magnitude (zero to complete pricing-to-market) and the timing (when do rms changes prices), and that pricing-to-market is stronger on high-income markets. As discussed in detail in the paper, all results are in-line with predictions of several theoretical contributions to the litterature on pricing-to-market and exchange rate pass-through.

2012-11-08T00:00:00Z Højbjerg Jacobsen, Rasmus http://hdl.handle.net/10398/8377 2012-07-05T11:50:52Z 2011-12-14T00:00:00Z

Long Term Performance of Young Mothers and their Children in Denmark Højbjerg Jacobsen, Rasmus This paper uses a register dataset for the entire Danish population to examine the effect of early motherhood on labour market measures, health care measures and family measures for the mothers and their offspring. The dataset is divided into three groups according to the age of the woman at the time of her first child delivery. Using standard cross-sectional econometric techniques the results show that very young mothers (aged 16-21) have significantly lower employment rates, higher propensity to receive welfare benefits and a lower wage income. Children of very young mothers have a higher family replacement rate, more services received from General Practitioners and a higher propensity to receive ADHD-medications. The majority of the effects reported are also significantly greater for mothers who were aged 22-25 at the birth of their first child compared to older mothers.

2011-12-14T00:00:00Z