Showing 1 - 10 of 201
Governments often pursue procyclical fiscal policies, even though they reduce voter welfare. Is this because voters actually prefer procyclical policies? The analysis in this paper exploits the first individual-level evidence from an original survey of 12,000 respondents in 8 countries across...
Persistent link: https://www.econbiz.de/10014460802
We assess the usefulness of stochastic redistribution among a continuum of risk-averse agents with quasilinear utilities in labor. Agents differ according to their consumption tastes, which remain private information. We identify circumstances where stochastic redistribution is socially...
Persistent link: https://www.econbiz.de/10013464907
We discuss the existence of a pooling equilibrium in a two-period model of an insurance market with asymmetric …
Persistent link: https://www.econbiz.de/10012142264
Under certain conditions the optimal insurance policy will offer full coverage above a deductible, as Arrow and others … have shown long time ago. Interestingly, the same design of insurance policies applies in case of a single loss and ex …-ante moral hazard. However, many insurance policies provide coverage against a variety of losses and the possibilities for the …
Persistent link: https://www.econbiz.de/10001744785
form of an insurance contract to impose partial insurance of the low risks. This paper contributes to the discussion on … optimal insurance. It analyzes two basic forms of insurance contracts: A contract with a deductible and a contract imposing a … positive co-insurance rate. Since high risks can always self-reveal themselves as high risks and buy the optimal insurance …
Persistent link: https://www.econbiz.de/10001957148
Providing unemployment insurance is particularly problematic in countries with high informality because workers can … alternative schemes to provide insurance for unemployed individuals. First, it presents an economy that can be calibrated to … unemployment insurance savings account (UISA) scheme can be evaluated. The method is applied to Mexico, and the results show how …
Persistent link: https://www.econbiz.de/10011303255
We provide a framework for analyzing bilateral mergers when there is two-sided asymmetric information about firms’ types. We show that there is always a "no-merger" equilibrium where firms do not consent to a merger, irrespective of their type. There may also be a "cut-off" equilibrium if the...
Persistent link: https://www.econbiz.de/10001729427
This paper investigates the design of incentives in a dynamic adverse selection framework when agents’ production technologies display learning effects and agents’ rate of learning is private knowledge. In a simple two-period model with full commitment available to the principal, we show...
Persistent link: https://www.econbiz.de/10002521609
We analyze a Bayesian merger game under two-sided asymmetric information about firm types. We show that the standard prediction of the lemons market model–if any, only low-type firms are traded–is likely to be misleading: Merger returns, i.e. the difference between pre- and post-merger...
Persistent link: https://www.econbiz.de/10002202342
In a continuous-time setting, we study the design of a dynamic contract between a government and a private entity, wherein the latter commits to pay the government in return for the exclusive right to sell a service by operating a public facility. Private revenues are modelled as depending on...
Persistent link: https://www.econbiz.de/10013547855