Barney Hartman-Glaser
Institution
UCLA
PhD Year
2011
Phone
510-289-3983
bhglaser@gmail.com
FTG Membership
Member
Website
http://www.barneyhglaser.com
Featured Work
Jan 8, 2019
The Insurance is the Lemon: Failing to Index Contracts
We model the widespread failure of contracts to share risk using available indices. A borrower and lender can share risk by conditioning repayments on an index. The lender has private information about the ability of this index to measure the true state the borrower would like to hedge. The lender is risk averse, and thus requires a premium to insure the borrower. The borrower, however,...
