Showing 1 - 10 of 87
We revisit the signalling hypothesis, whereby potential employers use the duration of unemployment as a signal as to … unemployment benefits: individuals have good reasons to remain unemployed. Conversely, the signal becomes much more efficient once … benefitshave elapsed: skilled workers should not stay unemployed in such cases. Therefore, the potential duration of unemployment …
Persistent link: https://www.econbiz.de/10008793679
This paper examines the effect of moral hazard on dynamic insurance contract. It models primary prevention in a two period model with classification risk. Agents' preferences appear to play an important role in the determination of preventive effort and prepayment. If absolute prudence is larger...
Persistent link: https://www.econbiz.de/10008794365
We examine how moral hazard impacts risk-sharing when risk-taking can be part of the mechanism design. In a two-agent model with binary effort, we show that moral hazard always increases risk-taking (that is the amount of wealth invested in a risky project) whereas the effect on risk-sharing...
Persistent link: https://www.econbiz.de/10008794403
This paper studies the optimal unemployment insurance for older workers in a repeated principal-agent model, where the …). When unemployment benefits are the only available tool, the insurance agency is not able to induce older workers to search … dependent on the length of the unemployment spell. We show that this device performs better than a wage tax after re …
Persistent link: https://www.econbiz.de/10009647516
That paper formalizes the idea that when the magnitude of the moral hazard phenomenon is not important, the distortions like equilibria multiplicity or equilibrium discontinuity relative to the economic fundamentals disappear. We study a two state of nature insurance model, with a risk neutral...
Persistent link: https://www.econbiz.de/10010738744
This paper provides an analysis of the health insurance and health care consumption. A structural microeconomic model of joint demand for health insurance and health care is developed and estimated using full maximum likelihood method using Swiss insurance claims data for over 60 000 adult...
Persistent link: https://www.econbiz.de/10010738866
groups affected by the partial insurance against idiosyncratic risks? The design of unemployment insurance schemes in …
Persistent link: https://www.econbiz.de/10010738915
This paper is a first attempt to connect the heterogeneity in bank efficiency with lending fluctuations and allocation efficiency: there is a trade-off between the two in the presence of heterogeneity in bank monitoring efficiency. The mechanism at hand is twofold. (a) First the rent extracted...
Persistent link: https://www.econbiz.de/10010739116
We investigate how moral hazard problems can cause sub-optimal investment in energy efficiency, a phenomenon known as the energy efficiency gap. We argue that such problems are likely to be important for home energy retrofits, where both the seller and the buyer can take hidden actions. The...
Persistent link: https://www.econbiz.de/10010821504
At the end of working life, as well as reducing unemployment benefits, the unemployment-insurance agency could apply …. Finally, even in the special case where search intensity is zero close to retirement, perfect risk-sharing across unemployment …
Persistent link: https://www.econbiz.de/10010821519