Disability Insurance (DI) may affect workers' outcomes such as their probability to enter DI, to recover, and their … employment. Supplementary insurance may increase these moral hazard effects, but also increases the financial gains of private … increased insurance coverage on workers' outcomes are thus ambiguous. This paper aims to separate worker and insurer responses …

contract depends on the average type attracted by the respective principal - can solve the equilibrium existence problem, even …

private insurance markets offer full coverage at fair rates, social insurance is desirable if and only if risk and … examine the role of uniform and nonuniform social insurance to supplement a general income tax when neither public nor private … (1971) equilibrium emerges in the private insurance market and low-wage/low-risk individuals are not fully insured. We show …

We analyze dynamic interactions between market insurance, the stock of insurable assets and liquid wealth accumulation … representative agent demands a nonnegligible amount of market insurance. The deductible is substantially higher than in static models … because agents can time-diversify their risk. Market insurance implies welfare gains of around .6% in terms of non …

's children. We decompose the effects of social security on the investment in human capital into an incentive effect, an insurance …: it can foster human capital accumulation and act as intragenerational insurance against human capital risk. …

, 1978, Chetty, 2006), but contrary to Chetty (2008), in our model the gain from insurance cannot be rewritten using …

Microeconomic theory predicts that under certain regularity conditions higher idiosyncratic risk increases the … and car insurance using data from the UK. The main empirical results are: - higher labor income risk induces a higher … demand for car insurance. - the effects of increases in labor income risk after 1979 seem to be more than offset by a more …

partial insurance of parental investments against permanent income shocks, but the magnitude of the estimated responses is … small. We cannot reject the hypothesis full insurance against temporary shocks. Another interpretation of our findings is … that there is very little insurance available, but the fact that skill is a non-separable function of parental investments …

provide a novel decomposition of labor income tax formulas into a redistribution and an insurance component. The latter is … capital tax is non-zero and trades off redistribution and insurance against savings distortions. Our quantitative results … reveal that the insurance component contributes significantly to optimal labor tax rates and provides an informative lower …

-free physical capital and risky human capital. Households have access to a complete set of credit and insurance contracts, but their … ability to use the available financial instruments is limited by the possibility of default (limited contract enforcement). We … households less than half of human capital risk is insured and the welfare losses due to the lack of insurance range from 3 …