Karl O. Aarbu

Karl O. Aarbu
NHH Norwegian School of Economics | NHH · Department of Business and Management Science

Phd Economics

About

20
Publications
1,120
Reads
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185
Citations
Additional affiliations
January 2019 - December 2019
NHH Norwegian School of Economics
Position
  • Professor (Associate)
January 2011 - present
NHH Norwegian School of Economics
Position
  • Professor (Associate)
Description
  • Master course "Challenges of the welfare state"
February 1995 - July 1995
University of Michigan
Position
  • Guest researcher

Publications

Publications (20)
Article
Using survey data and the instrument developed by Barsky et al. (1997), we estimate the distribution of attitudes towards income risk in a country where many employment and health‐related risks are generously covered by a tax‐financed social insurance system (Norway in 2006). Under a constant relative risk aversion assumption, the sample average fo...
Article
We test for the presence of asymmetric information in the home insurance market on a data set containing about half a million home insurance contracts, applying several different specifications of the conditional correlation test. Unlike earlier studies, we control for private information about risk aversion by having access to detailed administra...
Article
In this paper I test whether asymmetric information is present in the home insurance market. To detect the existence of asymmetric information I apply the so-called positive correlation test to a dataset containing approximately 500,000 home insurance contracts gathered from a Norwegian insurer. In addition to the standard formulations of the posit...
Article
In Scandinavia, the provision of health care services has been, almost entirely, the responsibility of the public health care system. However, in the last five to seven years there has been remarkable growth in the private health care market. These health care services are obtained normally through insurance contracts. In this paper, I seek explana...
Article
This is the first study that explores the heterogeneity of risk preferences among the Norwegian population. We measure risk aversion as the complement of the maximal relative downside income risk a person is willing to bear with 50 percent chance in return for a doubling of their income with 50 percent chance. The higher this fraction is, the more...
Article
We use data from a pay reform in an insurance company to contrast different theories of work motivations. The management installed performance pay to boost sales in the customer service centre of the company. The reform was successful. The bonus scheme gave the operators both self-regarding and other-regarding incentives to increase sales. The incr...
Article
Full-text available
We have followed a pay for performance reform in the phone based customer service centre of an insurance company, from its introduction in 2001 until the end of 2004. We use hard and soft data from the design and impact of the reform to contrast two theories of work motivation; the traditional self interest hypothesis that the principal-agent model...
Article
Full-text available
Many corporations do not claim all of their allowable tax depreciation deductions. Intuitively, this kind of behavior might seem odd. However we propose several possible explanations. First, we find strong evidence that firms facing current tax losses or carrying forward past losses underutilize depreciation in order to recover tax losses before th...
Article
Full-text available
Several studies, conducted on U.S. data, have found rather strong income responses to changes in marginal tax rates, when treating tax reforms as "natural experiments" and applying the differences-of-differences estimator on individual income data. The Norwegian tax reform of 1992 implied substantial increases in the net-of-tax rate (1 minus the ch...
Article
Full-text available
Several studies, conducted on U.S. data, have found rather strong income responses to changes in net-of-tax rates when treating tax reforms as "natural experiments" and applying the differences-of-differences estimator. Like the U.S. Tax Reform Act of 1986, the Norwegian tax reform of 1992 entailed substantial increases in the net-of-tax rate for h...
Data
Full-text available
Several studies, conducted on U.S. data, have found rather strong income responses to changes in net–of–tax rates when treating tax reforms as "natural experiments" and applying the differences–of–differences estimator. Like the U.S. Tax Reform Act of 1986, the Norwegian tax reform of 1992 entailed substantial increases in the net–of–tax rate for h...
Article
Several studies, conducted on U.S. data, have found rather strong income responses to changes in net-of-tax rates when treating tax reforms as "natural experiments" and applying the differences-of-differences estimator Like the U.S. Tax Reform Act of 1986, the Norwegian tax reform of 1992 entailed substantial increases in the net-of-tax rate for hi...
Article
Full-text available
. It has been noticed in several countries that many corporations do not claim all of their allowable tax depreciation deductions, despite incurring a higher tax cost. There are several possible explanations. First, the uniform reporting accounting system (typical of many European countries) can under certain circumstances constrain dividends. The...
Article
Are we better or worse off after the Norwegian tax reform of 1992 and how has the reform influenced the income sizes and the distribution of total income? This question denotes our twofold analysis in this paper. We first examine the trends in average income and income distribution in the period from 1991 to 1994. Second, we ask whether the tax ref...
Article
It has been noticed in several countries that many corporations do not claim all of their allowable tax depreciation deductions, despite incurring a higher tax cost. There are several possible explanations. First, the uniform reporting accounting system (typical of many European countries) can under certain circumstances constrain dividends. The di...
Article
Full-text available
This paper will focus on a particular provision in the Norwegian tax reform of 1992, the imputation of capital income for self employed and small incorporated firms with active owners. A simple user cost model is derived, and this model is used to discuss the impact on investment incentives that stems from imputation of capital income. Within this...
Article
Using a survey data set - kindly provided by a Nordic insurer - we are able to map the demand for health insurance conditional on several individual characteristics. In the exploration of the demand for health insurance we also utilize county level data on public health care queues in order to detect any linkages between public health care offers a...
Article
In the literature on …rm entry and performance, economists have given little attention to the individuals that start up these …rms. This paper considers the « Knightian» hypotheses that less risk-averse individuals are more likely to become entrepreneurs but start up …rms of inferior quality. Using data from Norway, we obtain proxies for risk toler...

Projects

Projects (4)