Keith J. Crocker

Color portrait of Keith J. Crocker

Professor, The William Elliott Chaired Professor of Insurance and Risk Management, Department Head of Risk Management

Department Risk Management
Office Address 355B Business Building
Phone Number 814-865-4172
Email Address ist@psu.edu

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Professor Keith J. Crocker joined the Smeal College of Business in 2003 as the William Elliott Chaired Professor of Insurance and Risk Management. He holds a B.A. from Washington and Lee University in mathematics and economics, and an M.S. and a Ph.D. from Carnegie Mellon University in economics. Prior to his current position at Penn State, Professor Crocker was the Waldo O. Hildebrand Professor of Risk Management and Insurance, and Professor of Business Economics and Public Policy, at the University of Michigan Business School. His previous experience includes appointments as Professor of Economics at The Pennsylvania State University, where he taught courses in law and economics, microeconomics, and industrial organization, as Assistant Professor in Economics Department at the University of Virginia, and as staff economist at the Federal Trade Commission.

Expertise

Professor Crocker has served as an expert witness in cases involving antitrust and insurance concerns, including captive taxation and workers compensation. His research interests have focused primarily on contracting issues, with a particular emphasis on the role of transaction costs, adverse selection, and moral hazard in the design of agreements. Professor Crocker's current topics of research include the examination of tax and accounting fraud, claims fraud in the context of insurance settlements, and the role of job attachment in the design of optimal employer-sponsored health insurance policies.

Education

Ph D, Economics, Carnegie Mellon University, 1981

MS, Economics, Carnegie Mellon University, 1978

BA, Mathematics and Economics, Washington and Lee University, 1976

Courses Taught

BA 533 – Econ for Mgrs (2)
An introduction to the tools of economic decision making and a consideration of firm, industry, and global economic influences on economic desicion making.

B A 533 – Economics for Managers (2)
An introduction to the tools of economic decision making and a consideration of firm, industry, and global economic influences on economic desicion making.

B A 597D – Advanced Microeconomic Theory
taught two week module

Selected Publications

Crocker K. J., Zhu N., "The Efficiency of Voluntary Risk Classification in Insurance Markets." Journal of Risk and Insurance, 2021
Crocker K. J., Letizia P., "Optimal Policies for Recovering the Value of Consumer Returns." Production and Operations Management, 2014
Crocker K. J., Snow A., "The Theory of Risk Classification." Handbook of Insurance, (Springer), 2013
Crocker K. J., Snow A., "Multidimensional Screening in Insurance Markets with Adverse Selection." Journal of Risk and Insurance, vol. 78, 2011, pp. 287-307
Crocker K. J., Snow A., "Background Risk and the Performance of Insurance Markets under Adverse Selection." Geneva Risk and Insurance Review, vol. 33, 2008, pp. 137-160
Crocker K. J., Moran J., "Stable relations." Leader's Edge, 2008
Crocker K. J., Slemrod J., "The Economics of Earnings Manipulation and Managerial Compensation.." RAND Journal of Economics, 2007, pp. 698-713
Crocker K. J., Slemrod J., "Corporate Tax Evasion with Agency Costs." Journal of Public Economics, vol. April 2017, 2005, pp. 1593-1610
Crocker K. J., Feber D., Feldmeier J., "The Economic Effects of Road Safety Improvements: An Insurance Claims Analysis." Journal of Risk and Insurance, 2003
Crocker K. J., Moran J., "Contracting with Limited Commitment: Evidence from Employment-Based Health Insurance Contracts." RAND Journal of Economics, 2003
Crocker K. J., Tennyson S., "Insurance Fraud and Optimal Claims Settlement Strategies." Journal of Law and Economics, 2002
Crocker K. J., Morgan J., "Is Honesty the Best Policy? Curtailing Insurance Fraud through Optimal Incentive Contracts." Journal of Political Economy, 1998
Crocker K. J., Bond E., "Hardball and the Soft Touch: The Economics of Optimal Insurance Contracts with Costly State Verification and Endogenous Monitoring Costs." Journal of Public Economics, 1997
Crocker K. J., Baye M., Ju J., "Divisionalization , Franchising and Divestiture Incentives in Oligopoly." American Economic Review, 1996
Crocker K. J., Lyon T., "What Do "Facilitating Practices" Facilitate"? An Empirical Analysis of Most-Favored Nation Clauses in Natural Gas Contracts." Journal of Law and Economics, 1994
Crocker K. J., Bond E., "Bank Capitalization, Deposit Insurance and Risk Categorization." Journal of Risk and Insurance, 1993
Crocker K. J., Reynolds K., "The Efficiency of Incomplete Contracts: An Empirical Analysis of Air Force Engine Procurement." RAND Journal of Economics, 1993
Crocker K. J., Snow A., "The Social Value of Hidden Information in Adverse Selection Economies." Journal of Public Economics, 1992
Crocker K. J., Masten S., "Pretia ex Machina? Prices and Process in Long Term Contracts." Journal of Law and Economics, 1991
Crocker K. J., Bond E., "Smoking, Skydiving and Knitting: The Endogenous Categorization of Risks in Insurance Markets with Asymmetric Information." Journal of Political Economy, 1991
Crocker K. J., Snow A., "The Efficiency Effects of Categorial Discrimination in the Insurance Industry." Journal of Political Economy, 1986
Crocker K. J., Masten S., "Efficient Adaptation in Long Term Contracts: Take or Pay Provisions for Natural Gas." American Economic Review, 1985
Crocker K. J., Snow A., "The Efficiency of Competitive Equilibria in Insurance Markets with Asymmetric Information." Journal of Public Economics, 1985
Crocker K. J., "Vertical Integration and the Strategic Use of Private Information." Bell Journal of Economics, 1983

Editorships

Geneva Risk and Insurance Review, Editorial Board, January 2013 - Present
Journal of Risk and Insurance, Editor, January 2013 - December 2019
Editor-in-Chief
Journal of Economics and Business, Editorial Board, January 2010 - Present
Journal of Risk and Insurance, Co-Editor, January 2010 - December 2012
Geneva Risk and Insurance Review, Co-Editor, January 2002 - January 2012