Replication data for: Beyond Statistics: The Economic Content of Risk Scores
Principal Investigator(s): View help for Principal Investigator(s) Liran Einav; Amy Finkelstein; Raymond Kluender; Paul Schrimpf
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
|---|---|---|---|
| Supplementary_Material | 10/12/2019 01:07:PM | ||
|
|
text/plain | 14.6 KB | 10/12/2019 09:07:AM |
Project Citation:
Einav, Liran, Finkelstein, Amy, Kluender, Raymond, and Schrimpf, Paul. Replication data for: Beyond Statistics: The Economic Content of Risk Scores. Nashville, TN: American Economic Association [publisher], 2016. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113643V1
Project Description
Summary:
View help for Summary
"Big data" and statistical techniques to score potential transactions
have transformed insurance and credit markets. In this paper, we observe that these widely-used statistical scores summarize a much richer heterogeneity, and may be endogenous to the context in which they get applied. We demonstrate this point empirically using data from Medicare Part D, showing that risk scores confound underlying health and endogenous spending response to insurance. We then illustrate theoretically that when individuals have heterogeneous behavioral responses to contracts, strategic incentives for cream-skimming can still exist, even in the presence of "perfect" risk scoring under a given contract. (JEL C55, G22, G28, H51, I13)
Scope of Project
JEL Classification:
View help for JEL Classification
C55 Large Data Sets: Modeling and Analysis
G22 Insurance; Insurance Companies; Actuarial Studies
G28 Financial Institutions and Services: Government Policy and Regulation
H51 National Government Expenditures and Health
I13 Health Insurance, Public and Private
C55 Large Data Sets: Modeling and Analysis
G22 Insurance; Insurance Companies; Actuarial Studies
G28 Financial Institutions and Services: Government Policy and Regulation
H51 National Government Expenditures and Health
I13 Health Insurance, Public and Private
Related Publications
Published Versions
Report a Problem
Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.
This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.