EconPapers    
Economics at your fingertips  
 

A Continuous Theory of Income Insurance

Assar Lindbeck and Mats Persson

No 763, Seminar Papers from Stockholm University, Institute for International Economic Studies

Abstract: In this paper we treat an individual’s health as a continuous variable, in contrast to the traditional literature on income insurance, where it is regularly treated as a binary variable. This is not a minor technical matter; in fact, a continuous treatment of an individual’s health sheds new light on the role and functioning of income insurance and makes it possible to capture a number of real-world phenomena that are not easily captured in binary models. In particular, moral hazard is not regarded as outright fraud, but as a gradual adjustment of the willingness to go to work when income insurance is available. Further, the model can easily encompass phenomena such as administrative rejection of claims and the role of social norms. It also gives a rich view of the desirability of insurance in the first place.

Keywords: moral hazard; disability insurance; sick pay; work absence; social norms (search for similar items in EconPapers)
JEL-codes: G22 H53 I38 J20 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2010-06-01
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: A Continuous Theory of Income Insurance (2010) Downloads
Working Paper: A Continuous Theory of Income Insurance (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:iiessp:0763

Access Statistics for this paper

More papers in Seminar Papers from Stockholm University, Institute for International Economic Studies Institute for International Economic Studies, Stockholm University, S-106 91 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Hanna Christiansson ().

 
Page updated 2021-10-25
Handle: RePEc:hhs:iiessp:0763