https://macropaperwarehouse.com/authors/boaz-abramson/Boaz AbramsonHugo -- gohugo.ioen-ushttps://macropaperwarehouse.com/papers/rent-guarantee-insurance/https://macropaperwarehouse.com/papers/rent-guarantee-insurance/<p>Abramson and Van Nieuwerburgh study Rent Guarantee Insurance (RGI), a product in which an insurer pays the landlord on behalf of a tenant who defaults on rent due to a negative income or health expenditure shock, in exchange for a monthly premium proportional to rent. The central question is whether RGI can be designed to be both welfare-improving and financially viable, given the frictions of moral hazard and adverse selection.</p>