Econometrics of insurance (ECONOMETRICS)

(mars 2022)

In this lecture, we want to deal with two issues:

• How to deal with qualitative variables modelling in the SAS System
• First, we will focus on applications of your previous lecture about qualitative variables econometrics.

These applications will cover various forms of choice: binary, categorical and non categorical, ordered evaluation of choices, countable events. Also, the Sas software will be used as an econometric tool for modelling these choices.

Highlight these methods in the field of insurance economics

Also, these applications will be chosen from the field of insurance economics at large. The scope of study will cover the factors explaining the decisions between various forms of insurance, of complementary insurance and the effect of social insurance on individual’s health behaviour.

Outline of the lectures:

• Discrete choice modelling:
• Logit (or probit) modelling of choice of life insurance
• Multinomial logit modelling of long-term care insurance
• Ordered Logit or Probit modelling of choice of the extent of insurance cover
• Count data
• Poisson and negative binomial modelling of the number of doctor visits in relation with the access to Medicaid or Medicare Insurance systems