The Solicitor General and the Interests of the United States

Strauss examines the institutional and administration approach to the issue of the Solicitor General\u27s involvement in legal questions not directly involving the federal government

Uberrimae Fidei and Adverse Selection: the equitable legal judgment of Insurance Contracts

This paper examines uberrimae fidei (utmost good faith) with adverse selection in an insurance market. If consumers know their risk type (they know their expected loss), and if they understand the concept of uberrimae fidei, adverse selection is completely eliminated. However, if uberrimae fidei is strictly enforced by the courts, insurers have no incentive to do any underwriting whatsoever. Therefore, whether consumers know their risk type or not, and whether they understand uberrimae fidei, is of paramount importance. If consumers don’t know their risk type or don’t understand uberrimae fidei, then the (equitable) non-strict enforcement (judicial ruling) of contracts of insurance can be efficiency enhancing as it can create an ex-ante incentive for insurers to underwrite. With an ex-ante positive probability that a court may rule equitably in favor of the insured, the insurer engages in underwriting as part of its profit maximization objective, helping insureds to discover their risk type and/or educating potential insureds on the requirements of a contract of uberrimae fidei. This paper therefore contributes a new theory of underwriting.Insurance, Uberrimae Fidei, Utmost Good Faith, Adverse Selection, Contract Theory, Equity, Equitable Law, Institutions, Insurance Cycle

The financial leverage of Insurers subject to price regulation: evidence from Canada

The variation in the degree of price regulation in the property-liability insurance market in Canada varies across time and space, creating an opportunity to test a recurring theory in regulatory economics: that price regulated firms have higher levels of financial leverage. Using an instrumental variable for the stringency of price-regulation, this paper utilizes a panel data set of Canadian property-liability insurers over ten years of time, 1997-2006. The results support the theory but do not conclude on whether the increase in financial leverage is a strategic decision or a natural reaction to worsening business conditions brought-on by price-regulation.Price Regulation, Insurance, Financial Leverage, Capital Structure, Bankruptcy

Recovering the Tidal Field in the Projected Galaxy Distribution

We present a method to recover and study the projected gravitational tidal forces from a galaxy survey containing little or no redshift information. The method and the physical interpretation of the recovered tidal maps as a tracer of the cosmic web are described in detail. We first apply the method to a simulated galaxy survey and study the accuracy with which the cosmic web can be recovered in the presence of different observational effects, showing that the projected tidal field can be estimated with reasonable precision over large regions of the sky. We then apply our method to the 2MASS survey and present a publicly available full-sky map of the projected tidal forces in the local Universe. As an example of an application of these data we further study the distribution of galaxy luminosities across the different elements of the cosmic web, finding that, while more luminous objects are found preferentially in the most dense environments, there is no further segregation by tidal environment.Comment: 18 pages, 13 figures. Data publicly available at http://intensitymapping.physics.ox.ac.uk/2mass_tidal.htm

Forecasting real housing price growth in the Eighth District states

The authors consider forecasting real housing price growth for the individual states of the Federal Reserve's Eighth District. They first analyze the forecasting ability of a large number of potential predictors of state real housing price growth using an autoregressive distributed lag (ARDL) model framework. A number of variables, including the state housing price-to-income ratio, state unemployment rate, and national inflation rate, appear to provide information that is useful for forecasting real housing price growth in many Eighth District states. Given that it is typically difficult to determine a priori the particular variable or small set of variables that are the most relevant for forecasting real housing price growth for a given state and time period, the authors also consider various methods for combining the individual ARDL model forecasts. They find that combination forecasts are quite helpful in generating accurate forecasts of real housing price growth in the individual Eighth District states.Housing - Prices ; Federal Reserve District, 8th

The long-run relationship between consumption and housing wealth in the Eighth District states

Federal Reserve District, 8th ; Consumption (Economics) ; Housing