Government relief for risk associated with government action
Article Abstract:
Policy shifts enacted by a government result in either gains and losses for investors depending on the superseded laws. To alleviate their impact, the government provides relief either through direct compensation, grandfather clauses or delayed implementation. However, such risk mitigation actions often have a negative effect on ex ante investment incentives and risk spreading. This is borne out by a mathematical model of compensation that also considered the availability of market relief through insurance.
Publication Name: Scandinavian Journal of Economics
Subject: Economics
ISSN: 0347-0520
Year: 1992
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Optimal distribution and the family
Article Abstract:
The composition of family units has a significant effect on income tax burdens, welfare payments and social security benefits. There is much debate regarding the appropriate forms of adjustment as evidenced by the diversity in methods among programs, across jurisdictions and through time. A utilitarian welfare function was used to derive the equitable income distribution for various family configurations.
Publication Name: Scandinavian Journal of Economics
Subject: Economics
ISSN: 0347-0520
Year: 1996
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Second-best insurance contract design in an incomplete market
Article Abstract:
The optimal insurance contract for multiple risks is analyzed. Second-best insurance contracts are considered the solution to cases where different contracts are required for different losses. Such contracts provide low indemnities for high agreggate losses and high indemnities for small single losses. Premiums are also found to be lower for second-best separate insurance policies.
Publication Name: Scandinavian Journal of Economics
Subject: Economics
ISSN: 0347-0520
Year: 1995
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- Abstracts: Government guidelines may boost demand for medical waste treatment equipment
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- Abstracts: Rational entry into risky markets with negative expected returns. Sentimental fools: a critique of Amartya Sen's notion of commitment
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- Abstracts: Comment on H. Genberg and A. Swoboda, "Saving, investment and the current account." Comment on J.I. Bernstein, "Information Spillovers, Margins, Scale and Scope: with an Application to Canadian Life Insurance." (response to article by Jeffrey I. Bernstein in this issue, p.S95)