Oliveira, Márcia Ferreira de; Pires, Cesaltina Pacheco; … - Centro de Estudos e Formação Avançada em Gestão e … - 2013
This paper presents a static model of adverse selection where the government (principal) aims to minimize the cost of a Poverty Alleviation Program (PAP) ensuring that all agents have access to a minimum level of income. In a two-type-agent model (Rich and Poor) in which agents differ either on...