Teaching an Insurance Model: An Interactive Exercise

Abstract

In this paper we present a tutorial exercise where advanced undergraduate students can solve a problem of insurance demand using Excel Solver, and explore the main features of this problem. We also present an interactive Excel file that contains the graphical analysis of different attitudes toward risk using some well-known utility functions. The interactive Excel includes scroll bars that can be used to perform both comparative static and interactive graphical analyses, with the aim to improve students´ understanding of the model