When formal insurance is unavailable, mutual insurance among households can serve as an alternative. This paper … trigger-strategy equilibrium can be achieved. Full insurance is possible with strongly negatively correlated endowments, while … partial insurance is generally feasible. The analysis highlights environments wherein varying levels of insurance can emerge …

Disability Insurance (DI) may affect workers' outcomes such as their probability to enter DI, to recover, and their … employment. Supplementary insurance may increase these moral hazard effects, but also increases the financial gains of private … increased insurance coverage on workers' outcomes are thus ambiguous. This paper aims to separate worker and insurer responses …

uncertainty decreases the rate of efficient service provision and leads to less trade. In theory, insurance also decreases the … that considers both diagnostic uncertainty of sellers and the effects of insurance coverage of consumers in a unified … framework. We test the model's predictions in a laboratory experiment. Both in theory and in the experiment diagnostic …

This paper studies the design of health insurance with ex post moral hazard, when there is imperfect competition in the … are considered. The insurance contract specifies two types of copayments: an ad valorem coinsurance rate and a specific …

private insurance markets offer full coverage at fair rates, social insurance is desirable if and only if risk and … examine the role of uniform and nonuniform social insurance to supplement a general income tax when neither public nor private … (1971) equilibrium emerges in the private insurance market and low-wage/low-risk individuals are not fully insured. We show …

We analyze dynamic interactions between market insurance, the stock of insurable assets and liquid wealth accumulation … representative agent demands a nonnegligible amount of market insurance. The deductible is substantially higher than in static models … because agents can time-diversify their risk. Market insurance implies welfare gains of around .6% in terms of non …

's children. We decompose the effects of social security on the investment in human capital into an incentive effect, an insurance …: it can foster human capital accumulation and act as intragenerational insurance against human capital risk. …

, 1978, Chetty, 2006), but contrary to Chetty (2008), in our model the gain from insurance cannot be rewritten using …