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Adverse Selection vs Discrimination Risk with Genetic Testing. An Experimental Approach

Bardey, David; De Donder, Philippe; Mantilla, Cesar - 2021

, exposing them to the risk of having to pay a large premium in case they are discovered to have a high probability of developing … a disease (a discrimination risk). Differently, Consent Law allows them to hide this detrimental information, creating … exogenous values of adverse selection under Consent Law, and the repeated interactions experiment devised has not resulted in …

Persistent link: https://www.econbiz.de/10013315562

Habit Formation and Labor Supply

Cremer, Helmuth - 2008

This paper shows that the combination of habit formation - present consumption creating additional consumption needs in the future - and myopia may explain why some retirees are forced to 'unretire', i.e., unexpectedly return to work. It also shows that when myopia about habit formation leads to...

Persistent link: https://www.econbiz.de/10012771200

On the Political Economy of University Admission Standards

De Donder, Philippe - 2015

We study the political determination of the proportion of students attending university when access to higher education is rationed by admission tests. Parents differ in income and in the ability of their unique child. They vote over the minimum ability level required to attend public...

Persistent link: https://www.econbiz.de/10013021411

Voting Under the Threat of Secession : Accommodation vs. Repression

Anesi, Vincent - 2011

measure of secession risk and perform the comparative static analysis of the equilibrium policy location and of the secession … risk with respect to the cultural distinctiveness of the two regions, the relative weight attached by voters to economic …

Persistent link: https://www.econbiz.de/10013124688

Taxing Sin Goods and Subsidizing Health Care

Cremer, Helmuth - 2008

We consider a two-period model. In the first period, individuals consume two goods: one is sinful and the other is not. The sin good brings pleasure but has a detrimental effect on second period health and individuals tend to underestimate this effect. In the second period, individuals can...

Persistent link: https://www.econbiz.de/10012772005

Politically Sustainable Probabilistic Minority Targeting

De Donder, Philippe - 2014

We show that a transfer targeting a minority of the population is sustained by majority voting, however small the minority targeted, when the probability to receive the transfer is decreasing and concave in income. We apply our framework to the French social housing program and obtain that...

Persistent link: https://www.econbiz.de/10013048895

The Political Choice of Social Long Term Care Transfers When Family Gives Time and Money

De Donder, Philippe - 2015

We develop a model where families consist of one parent and one child, with children differing in income and all agents having the same probability of becoming dependent when old. Young and old individuals vote over the size of a social long term care transfer program, which children complement...

Persistent link: https://www.econbiz.de/10013021404

The Dynamics of Capital Accumulation in the US : Simulations after Piketty

De Donder, Philippe - 2015

We calibrate a sequence of four nested models to study the dynamics of wealth accumulation. Individuals maximize a utility function whose arguments are consumption and investment. They desire to accumulate wealth for its own sake – this is not a life-cycle model. A competitive firm produces a...

Persistent link: https://www.econbiz.de/10013023114

Private, Social and Self-Insurance for Long-Term Care in the Presence of Family Help - A Political Economy Analysis

De Donder, Philippe - 2013

insurance redistributes across income and risk levels, while private insurance is actuarially fair. The income-to-risk ratio of …

Persistent link: https://www.econbiz.de/10013077454

Education and Social Mobility

Cremer, Helmuth; De Donder, Philippe; Pestieau, Pierre - 2021

This paper shows that the design of education policy involves a potential conflict between welfare and social mobility. We consider a setting in which social mobility is maximized under the least elitist public education system, whereas welfare maximization calls for the most elitist system. We...

Persistent link: https://www.econbiz.de/10013316250