to some extent on the ground that it serves as social insurance against uncertainties in labor income. They assume that … private insurance is unavailable. primarily because of moral hazard, and demonstrate that some taxation is efficient because … the benefits of mitigating risk exceed incentive costs. This note suggests that private insurance should be considered …

. This paper explores the effect of such relief on incentives and the allocation of risk in a model with private insurance …. It is shown that government relief is inefficient, even when its level is less than the private insurance coverage that … individuals would otherwise have purchased and even when private insurance coverage is incomplete due to problems of moral hazard …

bearing are examined in a model in which private insurance is taken into account. It is demonstrated that government relief is … inefficient, even when private insurance is subject to moral hazard, because relief shields individuals from some of the effects …