Is the Market Classification of Risk Always Efficient? - Evidence from German Third Party Motor Insurance

This paper studies the empirical effects of risk classification in the mandatory third-party motor insurance of Germany following the European Union’s directive to de-regulate insurance tariffs of 1994. We find evidence that inefficient risk categories had been selected while potentially efficient information was dismissed. Risk classification did generally not improve the efficiency of contracting or the composition of insureds in this market. These findings are partly explained by the continuing existence of institutional restraints in this market such as compulsory fixed coverage and unitary owner insurance.

Over two decades of blended and online physics courses at Michigan State University

In Fall 1992, our first physics course offered online homework. Over two decades later, we have seven physics courses online, spanning the whole range of introductory course offerings, with a total of over 1600 students in 2014. We found that several of the the purely online courses had better learning success than traditional lecture courses, as measured by exam scores. Particularly successful were online materials with embedded assessment. This result can be interpreted in different ways, but may serve as an indicator that during in-class lectures, we are oftentimes not taking advantage of the fact that we have the students on-site.