Showing 1 - 10 of 1,300
Firm's inability to monitor employees search efforts results in a tradeoff between risk-bearing and incentive considerations in the design of employment-related insurance. Since the provision of insurance against firm-specific shocks adversely affects workers' incentives to search out better...
Persistent link: https://www.econbiz.de/10005688268
This paper shows that, except in certain limiting cases, competitive equilibrium with moral hazard is constrained inefficient. The first section compares the competitive equilibrium and the constrained social optimum in a fairly general model, and identifies six types of market failure. Each of...
Persistent link: https://www.econbiz.de/10005688475
The central result of this paper is that when moral hazard is present, shadow prices in general differ from market prices. To remedy this market failure, the government should introduce differential commodity taxation. Moral hazard causes people to take too little care to prevent accidents. The...
Persistent link: https://www.econbiz.de/10005688558
This paper examines the existence and properties of competitive equilibrium in economies with moral hazard. The nature of competitive equilibrium depends on whether insurers can observe an insured's total purchases of insurance. If insurers can observe this, an individual will purchase all his...
Persistent link: https://www.econbiz.de/10005688597
This paper is the first in a series. Among the results are: 1) Indifference curves between premiums and payouts are not generally quasi-concave; as a result the price- and income-consumption lines are generally not continuous; 2) Accident prevention effort is generally not continuous or monotonic...
Persistent link: https://www.econbiz.de/10005497216
A multi-period, general equilibrium labour market model is developed where risk-averse workers face job-related uncertainty and labour turnover is costly. If a worker is unlucky and suffers a bad match, he quits and joins another firm. We assume that the quality of a job match is unobservable; as...
Persistent link: https://www.econbiz.de/10005653238
Mirrlees' seminal article in residential location theory discussed the welfare economics of a town where land is a consumer good. The most remarkable result was that identical individuals should not in general have equal utilities at the social welfare optimum. This paper provides a simple...
Persistent link: https://www.econbiz.de/10005688184
This paper uses a general equilibrium model of residential land use to study the effects of the property tax in a closed city. Two different specifications of the production technology for housing are used, and yield similar results. The model is too complicated to be solved in closed form, but...
Persistent link: https://www.econbiz.de/10005688217
This paper uses a general equilibrium simulation model of residential land use to study the long-run effects of transportation changes in a closed city. The effects considered include the aggregate benefits from and income distributional impact of the changes, and the induced alterations in the...
Persistent link: https://www.econbiz.de/10005688310
This paper investigates features of an urban economy where there is unpriced transportation congestion. It focusses on the relationship between the market rent on residential land, the shadow rent on residential land, and the shadow rent on land in road use, when road width is arbitrary, and...
Persistent link: https://www.econbiz.de/10005688366