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Author: | Hindriks, J. Donder, P. de |
Title: | The politics of redistributive social insurance |
Journal: | Journal of Public Economics
2003 : DEC, VOL. 87:12, p. 2639-2660 |
Index terms: | Social security Adverse selection Information economics |
Freeterms: | Social insurance Majority rule Redistribution |
Language: | eng |
Abstract: | The authors analyse the political support for a social insurance that includes elements of redistribution when there exists an imperfect private insurance alternative. Adopting a non-expected utility model, they show that there is a general majority support for social insurance and that this support is increasing with risk aversion. They also show that a mixed insurance is politically impossible, regardless of the degree of redistribution of social insurance and the joint distribution of risk and income in the population. |
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