Lindbeck, Assar; Persson, Mats - Institute for International Economic Studies (IIES), … - 2006
A large literature on ex ante moral hazard in income insurance emphasizes that the individual can affect the …€œmimickingâ€). The present paper instead presents a model of moral hazard ex post without a moral hazard constraint; the individual … moral hazard depends on the generosity of the insurance system. Our model is also well suited for analyzing social norms …