BOADWAY, Robin; LEITE-MONTEIRO, Manuel; MARCHAND, Maurice; … - Center for Operations Research and Econometrics (CORE), … - 2004
Rochet (1989) showed that with distortionary income taxes, social insurance is a desirable redistributive device when risk and ability are negatively correlated. This finding is reexamined when ex post moral hazard and adverse selection are included, and under different informational...