Need help with my Economics question – I’m studying for my class.
Pick one of the articles and answer the following question:
How did the authors test for adverse selection? Are their findings in this paper consistent with the adverse selection effect we studied in the last class? (The attached pictures are the activity of the last class. In the activity, buyers can freely choose whether to buy and which price to buy insurance according to their own type and the price provided by the seller. Sellers don’t know what type of buyer they are, so it is difficult to make money.)
* Answer the first question generally: comparing what groups, what time period, etc. You do not need to explain regression models.
Responses should be 1–2 pages, neatly formatted with double spacing, 12 point font, and 1” margins.
Do not use outside sources, just write everything in your own language.