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A major benefit of health insurance coverage is that it protects the insured from unexpected medical costs that may … examine the effect of a major health care reform in Massachusetts in 2006 on a broad set of financial outcomes. We exploit … who had limited access to credit markets before the reform. These results show that health care reform has implications …
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We find that the Friedman rule is not optimal with real government transfers and distortionary taxation. As transfers cannot be taxed, a positive nominal net interest rate is the indirect way to tax the additional income derived from transfers. This result holds for heterogeneous agents,...
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