Gary-Bobo, Robert J.; Trannoy, Alain - HAL - 2014
-market outcomes, adverse selection, moral hazard and risk aversion. The model combines student loans with an elementary optimal income …-tax problem. The second-best optima provide incomplete insurance because of moral hazard; they typically involve cross … the income tax must comprise a graduate tax. The interaction of adverse selection and moral-hazard, i.e., self …