Hagedorn, Marcus; Kaul, Ashok; Mennel, Tim - In: Journal of Economic Dynamics and Control 34 (2010) 3, pp. 490-502
We ask whether offering a menu of unemployment insurance contracts is welfare-improving in a heterogeneous population. We adopt a repeated moral hazard framework as in Shavell and Weiss (1979), supplemented by unobserved heterogeneity about agents' job opportunities. Our main theoretical...