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about whether a low-cost service is sufficient or whether a high-cost treatment is required to solve the consumerś problem … objective outcome but only the consumerś report, or subjective evaluation. A failure of the low-cost treatment delays the … solution of the consumerś problem by the high-cost treatment to a second period. We show that the first-best solution can …
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This paper revisits the personal expenditure tax (PET), the most prominent version of a progressive consumption tax. The PET has a long intellectual tradition in economics, and the merits and demerits of this alternative to the personal income tax have been discussed at length. What has been...
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Public disability insurance (DI) programs in many countries face pressure to reduce their generosity in order to remain sustainable. In this paper, we investigate the welfare effects of giving a larger role to private insurance markets in the face of public DI cuts. Exploiting a unique reform...
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