We characterize how public insurance schemes are constrained by hidden financial transactions. When non-exclusive private insurance entails increasing unit transaction costs, public transfers are only partly offset by hidden private transactions, and can influence consumption allocation. We show...

We develop a test for adverse selection and use it to examine private health insurance markets. In contrast to earlier papers that consider a purely private system or a system in which private insurance supplements a public system, we focus our attention on a system where privately funded health...

We use experiments to test comparative statics predictions of canonical tournament theory. Both the roles of principal and agent are populated by human subjects, allowing us to test predictions for both incentive responses and optimal tournament design. Consistent with theory, we observed an...

The present paper is a first attempt to develop a theoretical model using a short-term vis-à-vis long-term contract framework within which donor countries’ endorsement or rejection decision towards the recently proposed International Finance Facility (IFF) is rationalized. The current foreign...

Bis zum Auftreten der ersten Versicherungen prägten zwei Verhaltensweisen die Bewältigung von Elementarereignissen: Einerseits wurden die Leistungen auf freiwilliger Basis erbracht, andererseits kamen die Solidaritätsleistungen immer erst nach dem Eintritt der verheerenden Naturereignisse...

Die Transformation hierarchischer betrieblicher Steuerung in relationalen Vertrags- und Tauschbeziehungen hat in vielen europäischen Ländern zu einer Zunahme abhängiger Selbständigkeit geführt. Aufgrund des Graubereichs zwischen selbständiger und unselbständiger Beschäftigung stellen...

Free and competitive insurance markets are not able to provide a system which can be considered economically efficient to deal with the material risks of unemployment. Nor are individual unemployment insurance savings accounts – even when regulated by the state – a superior alternative. If...