https://hdl.handle.net/10419/64125 2026-09-15T23:21:42Z 2026-09-15T23:21:42Z Beyer, Marcel https://hdl.handle.net/10419/341640 2026-06-25T16:00:44Z 2026-01-01T00:00:00Z

Title: Determinants of insurance distress recovery Authors: Beyer, Marcel Abstract: This paper investigates the determinants of distress recovery of insurance companies. I develop three complementary distress definitions capturing market-based signals. To address model uncertainty and heterogeneity across firms and states of the world, I apply a mixture-ofexperts framework to these definitions. In the second part, the paper analyzes the determinants of distress recovery. The results show that firm characteristics, capitalization, asset allocation, and macro-economic conditions explain variation in recovery outcomes. Macroeconomic variables matter more for US insurers, whereas European insurers depend more on firm-specific variables. I benchmark competing empirical approaches to assess robustness and predictive performance. The results indicate that generalized linear models provide more accurate rank estimates of the order in which firms recover, while Cox proportional hazard models offer the most precise point estimate of distress duration.

2026-01-01T00:00:00Z Damast, Dominik Kubitza, Christian Sørensen, Jakob Ahm https://hdl.handle.net/10419/312410 2025-04-24T14:10:45Z 2025-01-01T00:00:00Z

Title: Homeowners insurance and the transmission of monetary policy Authors: Damast, Dominik; Kubitza, Christian; Sørensen, Jakob Ahm Abstract: We document a novel transmission channel of monetary policy through the homeowners insurance market. On average, contractionary monetary policy shocks result in higher homeowners insurance prices. Using granular data on insurers' balance sheets, we show that this effect is driven by the interaction of financial frictions and the interest rate sensitivity of investment portfolios. Specifically, rate hikes reduce the market value of insurers' assets, tightening insurers' balance sheet constraints and increasing their shadow cost of capital. These frictions in insurance supply amplify the effects of monetary policy on real estate and mortgage markets by making housing less affordable. We find that monetary policy shocks have a stronger impact on home prices and mortgage applications when local insurers are more sensitive to interest rates. This channel is particularly pronounced in areas where households face high climate risk exposure. Our findings highlight the role of insurance markets in amplifying macroeconomic shocks and the interconnections between homeowners insurance, residential real estate, and mortgage lending

2025-01-01T00:00:00Z Krueger, Dirk Ludwig, Alexander Popova, Irina https://hdl.handle.net/10419/294852 2024-05-11T01:34:43Z 2024-01-01T00:00:00Z

Title: Shaping inequality and intergenerational persistence of poverty: Free college or better schools Authors: Krueger, Dirk; Ludwig, Alexander; Popova, Irina Abstract: We evaluate the aggregate, distributional and welfare consequences of alternative government education policies to encourage college completion, such as making college free and improving funding for public schooling. To do so, we construct a general equilibrium overlapping generations model with intergenerational linkages, a higher education choice as well as a multi-stage human capital production process during childhood and adolescence with parental and government schooling investments. The model features rich cross-sectional heterogeneity, distinguishes between single and married parents, and is disciplined by US household survey data on income, wealth, education and time use. Studying the transitions induced by unexpected policy reforms we show that the "free college" and the "better schools" reform generate significant welfare gains, which take time to materialize and are lower in general than in partial equilibrium. It is optimal to combine both reforms: tuition subsidies make college affordable even for children from poorer parental backgrounds and better schools increase human capital thereby reducing dropout risk.

2024-01-01T00:00:00Z Grevenbrock, Nils Ludwig, Alexander Siassi, Nawid https://hdl.handle.net/10419/273558 2023-11-12T02:26:07Z 2023-01-01T00:00:00Z

Title: Homeownership rates, housing policies, and co-residence decisions Authors: Grevenbrock, Nils; Ludwig, Alexander; Siassi, Nawid Abstract: Homeownership rates differ widely across European countries. We document that part of this variation is driven by differences in the fraction of adults co-residing with their parents. Comparing Germany and Italy, we show that in contrast to homeownership rates per household, homeownership rates per individual are very similar during the first part of the life cycle. To understand these patterns, we build an overlapping-generations model where individuals face uninsurable income risk and make consumption-saving and housing tenure decisions. We embed an explicit intergenerational link between children and parents to capture the three-way trade-off between owning, renting, and co-residing. Calibrating the model to Germany we explore the role of income profiles, housing policies, and the taste for independence and show that a combination of these factors goes a long way in explaining the differential life-cycle patterns of living arrangements between the two countries.

2023-01-01T00:00:00Z