Lin, Wanchuan; Liu, Yiming; Meng, Juanjuan - In: Games and Economic Behavior 86 (2014) C, pp. 184-211
This paper investigates the crowding-out effect of formal insurance on informal risk-sharing arrangements via theory … and laboratory experiment. Our model and simulation predict that the crowding out of private transfers is often more than … exaggerates the crowding-out effect, especially when there is an ex-ante income inequality. These predictions are mostly supported …