Social insurance and redistribution

Robin Boadway, Manuel Leite-Monteiro, Maurice Marchand and Pierre Pestieau

No 2001041, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: This paper studies optimal linear income taxation and redistributive social insurance when the former has the traditional labor distortion and the latter generates both ex ante and ex post moral hazard. Private insurance is available and individuals differ in labor productivity and in loss probability. We show that government intervention in insurance markets is welfare-improving, and social insurance is generally desirable particularly when there is a negative correlation between laborproductivity and loss probability.

Date: 2001-10
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Citations: View citations in EconPapers (27)

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Related works:
Working Paper: Social insurance and redistribution (2003)
Working Paper: Social Insurance And Redistribution (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2001041

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