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Quantitative Analysis of Health Insurance Reform: Separating Community Rating from Income Redistribution

Pashchenko, Svetlana; Porapakkarm, Ponpoje - Volkswirtschaftliche Fakultät, … - 2010

Two key components of the upcoming health reform are a reorganization of the individual health insurance market and an … income risks. We replicate the key features of the current health insurance system in the U.S. and calibrate the model using … smaller. This result is mostly driven by the fact that most uninsured people have low income. High burdens of health insurance …

Persistent link: https://www.econbiz.de/10008685360

Savings for retirement under liquidity constraints: A note

Corsini, Lorenzo; Spataro, Luca - In: Economics Letters 118 (2013) 2, pp. 258-261

Pension systems often entail some compulsory saving over which individuals have some degree of choice in terms of the pension plan in which to invest. We analyse whether the choice between alternative plans is affected by the presence of liquidity constraints during working life and we prove...

Persistent link: https://www.econbiz.de/10010608075

Effectively Complete Asset Markets with Multiple Goods and over Multiple Periods

Hara, Chiaki - Institute of Economic Research, Kyoto University - 2009

Following LeRoy and Werner (2001), we propose a definition of effectively complete asset markets in a model with multiple goods and multiple periods, and establish the first and second welfare theorems in such markets. As applications of the first welfare theorem, we derive the sunspot...

Persistent link: https://www.econbiz.de/10008474976

Continuous Time Equilibrium Pricing of Nonredundant Assets.

Jouini, E.; Napp, C. - 1998

The problem of fair pricing of contingent claims is well understood in the context of an arbitrage free, complete financial market, with perfect information. But in the more realistic context of an incomplete market with imperfect information, the arbitrage approach does not enable us to aobtain...

Persistent link: https://www.econbiz.de/10005671489

On the Range of the Risk-Free Interest Rate in Incomplete Markets

Hara, Chiaki; Kajii, Atsushi - Institute of Economic Research, Kyoto University - 2003

In a model of a two-period exchange economy under uncertainty, we find both upper and lower bounds for the risk free interest rate when the agents' utility functions exhibit constant absolute risk aversion. These bounds are independent of the degree of market incompleteness, and so in particular...

Persistent link: https://www.econbiz.de/10005570196

Aggregate savings when individual income varies

Flodén, Martin (contributor) - 2005 - [Elektronische Ressource]

This paper examines aggregate savings in a general equilibrium model where infinitely lived households face volatile (and possibly uncertain) income paths, hold a risk-free asset, and face a liquidity constraint. I first show that the equilibrium capital stock in an economy without uncertainty,...

Persistent link: https://www.econbiz.de/10002679474

Heterogeneous Life-Cycle Profiles, Income Risk and Consumption Inequality

Primiceri, Giorgio E.; Rens, Thijs van - 2007

Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of …-cycle changes, transitory and permanent shocks and estimate the contribution of each to total inequality. Our model fits the joint … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

Persistent link: https://www.econbiz.de/10014225377

Inequality Over the Business Cycle : Estimating Income Risk Using Micro-Data on Consumption

Primiceri, Giorgio E.; Rens, Thijs van - 2006

We use CEX repeated cross-section data on consumption and income, to evaluate the nature of increased income inequality … and aggregate components, and estimate the contribution of each component to total inequality. The model we use is a … that taking risk sharing into account is important for the model fit; that the increase in inequality in the 1980s was …

Persistent link: https://www.econbiz.de/10014113227

Competitive Equilibria of Economies with a Continuum of Consumers and Aggregate Shocks

Miao, Jianjun - 2005

This paper studies competitive equilibria of a production economy with aggregate productivity shocks. There is a continuum of consumers who face borrowing constraints and individual labor endowment shocks. The dynamic economy is described in terms of sequences of aggregate distributions. The...

Persistent link: https://www.econbiz.de/10014028443

Competitive Equilibria of Economies with a Continuum of Consumers and Aggregate Shocks

Miao, Jianjun - 2003

This paper studies competitive equilibria of a production economy with aggregate productivity shocks and with a continuum of consumers subject to borrowing constraints and individual labor endowment shocks. The dynamic economy is described in terms of sequences of aggregate distributions. The...

Persistent link: https://www.econbiz.de/10014029766