Wu, T.C. Michael; Yang, C.C. - In: Economic Modelling 29 (2012) 6, pp. 2641-2645
Kaplow (1992) shows in a complete-information environment that allowing income tax deductions for losses as partial insurance is undesirable in the presence of private insurance markets. This paper elaborates on Kaplow's finding by studying two extreme types of asymmetric information structures...