Insurance and Public Pensions

 

Lecture Notes

1. A Model of Insurance
2. Adverse Selection in Insurance Markets
3. Public Pensions

 

 

Diagrams

1. Figure 1 : Less--than--Complete Insurance (when the price is too high)
2. Figure 2 : Full Insurance under Actuarially Fair Odds
3. Figure 3 : Attracting (only) the Low-Risk Buyers froma Pooling Contract
4. Figure 4 : The Only Possible Market Equilibrium with Adverse Selection
5. Figure 5 : Pensions Reallocate Income over the Life Cycle
6. Figure 6 : Public Pensions Crowd out Private Saving