is partially segmented from other financial markets: the prices of short-rate and bond supply risk are set by specialized …

We show that time variation in risk premia leads to time-varying idiosyncratic income risk for workers. Using US … administrative data on worker earnings, we show that increases in risk premia lead to lower earnings for low-wage workers; these … endogenous time-varying income risk in response to changes in risk premia and matches several stylized features of the data …

mechanisms that have been and can be used to combat these failures. Standardized contracts and creditable coverage mandates are … discussed, along with premium support, enrollment mandates, guaranteed issue, and risk adjustment, as remedies for selection … 2010. Enrollment mandates, premium subsidies, and risk adjustment can improve the stability and relative efficiency of the …

firms' incentives to selectively enroll low-cost individuals, governments frequently "risk-adjust" payments to firms based … on enrollees' characteristics. We model how risk adjustment affects selection and differential payments---the government … that firms reduce selection along dimensions included in the risk-adjustment formula, while increasing selection along …