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The role of asset testing in public health insurance reform

Hubert P. Janicki
2014 Journal of Economic Dynamics and Control  
These results are robust to the introduction of employer premium contributions, an independent health insurance market, and idiosyncratic shocks to eligibility for employment-based health insurance.  ...  I construct a dynamic stochastic general equilibrium model with indivisible labor supply expanded to include an endogenous household choice of health insurance coverage and calibrate it to U.S. data.  ...  Each period, agents make a choice of labor force participation and employment-based health insurance coverage.  ... 
doi:10.1016/j.jedc.2014.04.009 fatcat:xb6jyshdvbesnhkmwropwkblxy

Human Capital and Long-Run Labor Income Risk

Luca Benzoni, Olena Chyruk
2013 Social Science Research Network  
Finally, we discuss how to enrich the environment with heterogeneity in preferences and stock market exposures; endogenous labor supply and retirement decisions; health shocks; and human capital investment  ...  We draw on the existing literature to present a model that incorporates various types of shocks to earnings.  ...  Health Shocks Individual health has a broad effect on most life-time labor market outcomes including wages, earnings, labor force participation, hours worked, and retirement.  ... 
doi:10.2139/ssrn.2361497 fatcat:sshxapp4rfeilbexopcilhmvba

Life Insurance Demand under Health Shock Risk

Holger Kraft, Lorenz S. Schendel, Mogens Steffensen
2014 Social Science Research Network  
The wage earner faces the risk of a health shock that significantly increases his probability of dying. The family can buy term life insurance with realistic features.  ...  A second important and realistic feature of our model is that the labor income of the wage earner is unspanned.  ...  The health shock is permanent so that agents cannot recover again. Unhealthy agents cannot face another health shock. 3 The time of a health shock is denoted by τ H .  ... 
doi:10.2139/ssrn.2392384 fatcat:mc2b3ql4b5evllm6jjoo3hms4u

Life Insurance Demand Under Health Shock Risk

Christoph Hambel, Holger Kraft, Lorenz S. Schendel, Mogens Steffensen
2016 Journal of Risk and Insurance  
The wage earner faces the risk of a health shock that significantly increases his probability of dying. The family can buy term life insurance with realistic features.  ...  A second important and realistic feature of our model is that the labor income of the wage earner is unspanned.  ...  The health shock is permanent so that agents cannot recover again. Unhealthy agents cannot face another health shock. 3 The time of a health shock is denoted by τ H .  ... 
doi:10.1111/jori.12149 fatcat:vbcj2vybkncfhgfzow4dkddhem

Quantitative Macroeconomics with Heterogeneous Households

Jonathan Heathcote, Kjetil Storesletten, Giovanni L. Violante
2009 Annual Review of Economics  
This article reviews the quantitative macroeconomic literature that focuses on household heterogeneity, with a special emphasis on the "standard" incomplete markets model.  ...  Third, how does idiosyncratic risk interact with aggregate risk?  ...  More work needs to be done on integrating labor market frictions of this type into models with risk-averse agents and incomplete markets.  ... 
doi:10.1146/annurev.economics.050708.142922 fatcat:idnbfsk25nbypk6gpl6b6y7p2a

The Future of Multi-Pillar Pension Systems

A. Lans Bovenberg, Casper Van Ewijk
2011 Social Science Research Network  
It derives a typology of pension systems and uses this to discuss the strengths and weaknesses of alternative systems.  ...  This paper takes stock of the evolution in pension systems and the challenges that remain for the future.  ...  Indeed, the optimal retirement age depends on idiosyncratic health and labor-market risks, which tend to increase with age.  ... 
doi:10.2139/ssrn.1935307 fatcat:kcqjgytvfbgnbobeipczdnqnvq

Social Security, Benefit Claiming, and Labor Force Participation: A Quantitative General Equilibrium Approach

Selahattin Imrohoroglu, Sagiri Kitao
2010 Social Science Research Network  
We build a general equilibrium model with endogenous saving, labor force participation, work hours and Social Security benefit claiming, in which overlapping generations of individuals face income, survival  ...  , and health expenditure risks in incomplete markets.  ...  that takes a value of 1 if the agent participates { } in the market work and 0 otherwise.  ... 
doi:10.2139/ssrn.1567542 fatcat:ztvetdu7hvfsbfpfsk52o762vi

Market inefficiency, insurance mandate and welfare: U.S. health care reform 2010

Juergen Jung, Chung Tran
2016 Review of economic dynamics (Print)  
JEL: H51, I18, I38, E21, E62 1 Ex-ante moral hazard is absent in our framework since agents are not able to influence the probability distribution of health shocks.  ...  We quantify the effects of the Affordable Care Act (ACA) using a stochastic general equilibrium overlapping generations model with endogenous health capital accumulation calibrated to match U.S. data on  ...  health economics: an incomplete markets model with heterogeneous agents (Bewley (1986) ) and a lifecycle model of health capital accumulation (Grossman (1972a) ).  ... 
doi:10.1016/j.red.2016.02.002 fatcat:xjknc54r3zaxzk2l4xywhbhy4q

Heterogeneity in the Value of Life

Joseph E. Aldy, Seamus John Smyth
2014 Social Science Research Network  
We develop a numerical life-cycle model with choice over consumption and leisure, stochastic mortality and labor income processes, and calibrated to U.S. data to characterize willingness to pay (WTP) for  ...  Our theoretical framework can explain many empirical ndings in this literature, including an inverted-U life-cycle WTP and an order of magnitude dierence in prime-aged adults WTP.  ...  age, and labor market compensation and participation outcomes.  ... 
doi:10.2139/ssrn.2439955 fatcat:vr7z7tvbrvcr3jlpxxqsbu2sky

The Affordable Care Act in an Economy with Federal Disability Insurance

Yue Li
2014 Social Science Research Network  
This paper extends the Bewley-Huggett-Aiyagari incomplete markets model by endogenizing health accumulation and disability decisions.  ...  One of its principal objectives is to increase the rate of health insurance coverage for Americans by subsidizing the purchase of health insurance through an insurance exchange, expanding state-operated  ...  The model is capable of generating this decline because the model allows the probability of getting health shocks to increase and the effectiveness of medical expenditures to decline with respect to age  ... 
doi:10.2139/ssrn.2448955 fatcat:ga6svvdf6jbspm4ly5uo55qp44

Bumpy Rides: School-to-work Transitions in South Africa

Todd Pugatch
2017 Labour  
The model accounts for uncertainty in both schooling and labor market outcomes, and allows for re-enrollment in school after periods of withdrawal.  ...  To do so, I estimate a structural model of schooling choice in South Africa using a panel dataset that contains the entire schooling and labor market histories of sampled youths.  ...  This means that all else equal, adverse labor market shocks make an agent more likely to re-enroll.  ... 
doi:10.1111/labr.12114 fatcat:mg6pmavijzenrdy7v6ypfyvqny

Cross-Subsidization in Employer-Based Health Insurance and the Effects of Tax Subsidy Reform

Svetlana Pashchenko, Ponpoje Porapakkarm
2016 National tax journal  
A major source of insurance coverage for non-elderly adults in the US is employer-based health insurance market.  ...  Every participant of this market gets a tax subsidy since premiums are excluded from taxable income.  ...  Our approach is based on a quantitative heterogeneous agents model augmented with medical spending shocks.  ... 
doi:10.17310/ntj.2016.3.04 fatcat:d3o24aopyvfl3lj5f4si6ipoqi

Life-Cycle Portfolio Allocation for Disappointment Averse Agents

Revansiddha Basavaraj Khanapure
2010 Social Science Research Network  
I solve the life-cycle portfolio allocation problem of a disappointment averse (DA) agent with labor income risk.  ...  I also show that sufficiently disappointment averse agents abstain from stocks after retirement, which is consistent with the observed low rates of stock market participation among retirees.  ...  I study the implications of crashes in the life-cycle model for an agent with DA preferences. I show that when crashes are possible, DA agents with low levels of wealth stay out of the stock market.  ... 
doi:10.2139/ssrn.2132243 fatcat:xyt7iec6xrbafkyu3rg3r5qz6i

"Frictions in Financial and Labor Markets":A Summary of the 35th Annual Economic Policy Conference

Rodolfo E. Manuelli, Adrian Peralta-Alva
2011 Review  
The model also includes health shocks, which are known to have important implications for precautionary savings and labor decisions.  ...  Health expenditure shocks are partially insured because of the presence of private health insurance. Each agent may or may not have access to private (employer-provided) health insurance.  ...  The key friction is a market with matching where buyers can sample only a finite number of prices. Monetary policy is neutral, yet the model accounts for price facts very well.  ... 
doi:10.20955/r.93.273-292 fatcat:gnvbnozgije3faw5f4oqpwlajm

Asset Pricing with Limited Risk Sharing and Heterogeneous Agents

Francisco Gomes, Alexander Michaelides
2007 The Review of financial studies  
We solve a model with incomplete markets and heterogeneous agents that generates a large equity premium, while simultaneously matching stock market participation and individual asset holdings.  ...  First, they receive different uninsurable labor income shocks. Second we have a life-cycle model and therefore young agents, mid-life households and retirees all behave differently.  ...  Our paper is part of a large literature investigating the implications of heterogeneous agent models with incomplete markets and/or limited stock market participation for asset pricing. 5 We also build  ... 
doi:10.1093/rfs/hhm063 fatcat:c4bobugb35h5lmbbsc52crvmna
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