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Full-Text Articles in Insurance

The Effect Of A Risk-Based Deposit Insurance Program In Korea, Youngil Oh Jan 2016

The Effect Of A Risk-Based Deposit Insurance Program In Korea, Youngil Oh

MPA/MPP Capstone Projects

Countries introduce a deposit insurance system to prevent bank-run and stabilize the financial market by protecting depositors. However, deposit insurance with a flat-rate system induces the insured banks to take more risky activities, an example of moral hazard. To deal with this problem, the Korea Deposit Insurance Corporation ('KDIC') adopted a Risk-Based Insurance Program ('RBIP ') for the Savings Banks ('SBs') on July 1, 2013, by charging a higher rate for the weak SB s and a lower rate for the healthy SBs. To mitigate the initial drastic impact on the SBs in an economic regression, the KDIC had reduced the ...


Implications Of Off-Farm Income For Farm Income Stabilization Policies, Simon Jette-Nantel Jan 2013

Implications Of Off-Farm Income For Farm Income Stabilization Policies, Simon Jette-Nantel

Theses and Dissertations--Agricultural Economics

This dissertation examines to what extent off-farm diversification may be an appropriate and accessible tool to mitigate the adverse effects from market failures and incompleteness in the crop and farm income insurance market. While the influence of the nonfarm sector has long been recognized as a primary force in shaping farm structure, off-farm income is rarely acknowledge as a risk management tool for operators and households of commercial farms. The dissertation develops a dynamic model that includes capital market imperfections, economies of scale in farm production, and the presence of adjustment costs in labor allocation decisions. The model provides a ...