Cohesion, Insurance and Redistribution

Cohesion , Insurance and Redistribution ∗

Governments use redistributive policies to favor relatively unproductive economic sectors. Traditional economic wisdom teaches that the government should instead buy out the agents in these sectors, and let them relocate to more productive sectors.We show that redistribution to a sector whose agents have highly correlated incomes generates an insurance value. Taking this insurance value into ac...

Supplementary Insurance with Ex-Post Moral Hazard: Efficiency and Redistribution∗

This paper investigates the topping-up scheme in health insurance when both public and private firms use linear contracts. First, the case with identical consumers is analyzed. The optimal public coverage is derived both when the firms play simultaneously and when they play sequentially. In the former case consumers are over-insured, whereas, in the latter case, the second-best allocation is ob...

Interregional Stabilisation and Redistribution by the Federal Unemployment Insurance

The insurance function of federal budgets against regional asymmetric income shocksin scal federations is well known in the literature. Empirical studies provide estimates of the amount of stabilisation between the regions. Especially automatic stabilisers, like the unemployment insurance, show a large reaction to regional imbalances. The goal of this paper is to estimate the amount of redistri...

Redistribution and insurance in the German welfare state

Welfare states redistribute both between individuals (inter-individual redistribution) reducing annual, cross-sectional inequality and over the lifecycle of an individual (intra-individual redistribution) insuring individuals against income risks in the long-term. But studies measuring redistribution often focus on a one-year period and the second aspect is neglected. To quantify both interand ...

The effect of Medicaid expansions on public insurance, private insurance, and redistribution.