insurance. I compare models with deterministic and stochastic hazard rate of death to a model without mortality risk. Mortality … influences optimal controls and wealth evolution. The insurance is used to ensure optimal bequest such that there is no … accidental bequest. In the absence of the insurance, the biggest part of bequest is accidental. …

-ante leverage and insurance decisions are associated with aggregate demand externalities. The competitive equilibrium allocation is … constrained inefficient. Welfare can be improved by ex-ante macroprudential policies such as debt limits and mandatory insurance …

lifetime tax reform linking annual taxes to previous employment could improve the system's insurance capabilities, albeit at …