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| Author: | Netzer, N. Scheuer, F. |
| Title: | Taxation, insurance, and precautionary labor |
| Journal: | Journal of Public Economics
2007 : AUG, VOL. 91:7-8, p. 1519-1531 |
| Index terms: | taxation insurance labour social security adverse selection |
| Language: | eng |
| Abstract: | This paper explores optimal taxation and social insurance with adverse selection (here as: adv-sel.) in competitive insurance markets. Among others, it is shown that adv-sel. can weaken the case for social insurance compared to a situation with perfect markets. Whenever social insurance mitigates private underinsurance, it also causes welfare-reducing effects by decreasing precautionary labour supply and hence tax revenue etc. |
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