For every range of admissible incomes, the authors characterize the class of Engel curves with the property that if an economy has, first, a price independent distribution of income and, second, preferences which are identical across consumers and generate Engel curves in the class, then the...

We analyze risk sensitive incentive compatible deposit insurance in the presence of private information when the market value of deposit insurance can be determined using Merton's (1977, 3-11) formula.