Efficiency and equality in a simple model of efficient unemployment insurance.

The writers describe the efficient allocation of consumption and work effort in an economy in which workers face idiosyncratic employment risk and where full insurance is prevented by issues of moral hazard. They present a model of the long-run consequences of efficient unemployment insurance for th...

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Publicado en:Journal of Economic Theory Vol. 66; pp. 64 - 89
Autores principales: Atkeson, Andrew, Lucas, Robert E.
Formato: Artículo
Publicado: Academic Press Inc. June 1995
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: June 1995
      vid: 66
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      pub: Academic Press Inc.
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        10.1006/jeth.1995.1032
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        atl: Efficiency and equality in a simple model of efficient unemployment insurance.
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        au:
          Atkeson, Andrew
          Lucas, Robert E.
      su:
        Utility theory
        Moral hazard
        Resource allocation -- Mathematical models
        Consumption (Economics)
        Agency theory
        Risk
        Unemployment insurance
        Mathematical models
      sug:
        subj:
          Utility theory
          Moral hazard
          Resource allocation -- Mathematical models
          Consumption (Economics)
          Agency theory
          Risk
          Unemployment insurance
          Mathematical models
      ab: The writers describe the efficient allocation of consumption and work effort in an economy in which workers face idiosyncratic employment risk and where full insurance is prevented by issues of moral hazard. They present a model of the long-run consequences of efficient unemployment insurance for the distribution of welfare and consumption for these workers, define the efficiency problem, and establish the connection between the original efficiency problem and a one-on-one principal-agent problem. They consider the solution to the one-on-one principal-agent problem, examine the Markov process of entitlements generated by the solution to this problem, and demonstrate that the steady-state level of resource use is a continuous, increasing function of the interest rate, thereby establishing the existence of a market clearing interest rate.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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