aspect of the EITC that has received little attention thus far is its role as a public insurance program. Yet, the structure … to both wages and changes in family structure. Our study provides the first quantitative statement about the insurance … demographic risk, but have only limited self-insurance capacity. We use the model to compare outcomes under the EITC to the …

insurance; some paradoxes emerge. The model specifies three types of people: W (well); H (sick with high cure rate if treated …); and L (sick with low cure rate if treated). There are four insurance modes: Indemnity (I): fully covered treatments for Hs …): no insurance and no treatments); and Full (F): fully covered treatments for Hs and Ls). The three types of technological …

all, patients. If individuals are ignorant of their health status ex ante, they should be willing to purchase insurance … similarly induce Ls to forgo treatment but are rare in health insurance markets. They were once more common and remain so in non …-health markets. This paper reviews the potential for health insurance indemnities. We model an insurance market for a single illness …

We model a health insurance market where rising cure rates for a disease may paradoxically diminish welfare and even … negate the desirability of health insurance altogether. In the model, rising cure rates can affect welfare in two ways: (1 … insurance contract and, thus, ex post financial wealth distribution. (“Mode” refers to the qualitative specifications of the …

In this paper, we develop a normative theory of unsecured consumer credit and personal bankruptcy based on the optimal … trade-off between incentives and insurance. First, in order to characterize this trade-off, we solve a dynamic moral hazard … unsecured debts in bankruptcy. The structure of this equilibrium and the associated restrictions on debt discharge closely match …