?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F19308%2F&rft.title=Social+insurance+with+competitive+insurance+markets+and+risk+misperception&rft.creator=Cremer%2C+Helmuth&rft.creator=Roeder%2C+Kerstin&rft.subject=B-+ECONOMIE+ET+FINANCE&rft.description=This+paper+considers+an+economy+where+individuals+differ+in+productivity+and+in+risk.+Rochet+(1991)+has+shown+that+when+private+insurance+markets+offer+full+coverage+at+fair+rates%2C+social+insurance+is+desirable+if+and+only+if+risk+and+productivity+are+negatively+correlated.+This+condition+is+usually+shown+to+be+satisfied+for+many+health+risks%2C+but+it+appears+to+be+violated+for+the+old+age+dependency+risk+(mainly+because+longevity+in+turn+is+positively+correlated+with+productivity).+We+examine+the+role+of+uniform+and+nonuniform+social+insurance+to+supplement+a+general+income+tax+when+neither+public+nor+private+insurers+can+observe+individual+risk+and+when+it+is+positively+correlated+with+wages.+Consequently%2C+a+Rothschild+and+Stiglitz+(1971)+equilibrium+emerges+in+the+private+insurance+market+and+low-wage%2Flow-risk+individuals+are+not+fully+insured.+We+show+that+even+when+social+insurance+provided+to+the+poor+has+a+negative+incentive+effect%2C+it+also+increases+their+otherwise+insuficient+insurance+coverage.+Social+insurance+to+the+rich+produces+exactly+the+opposite+effects.+Whichever+of+these+effects+dominates%2C+some+social+insurance+is+always+desirable.+Finally%2C+we+introduce+risk+misperception+which+exacerbates+the+failure+of+private+markets.+The+insurance+term+now+reflects+the+combined+failure+brought+about+by+adverse+selection+and+misperception.+Now+the+low-risk+individuals+are+not+only+underinsured%2C+but+also+pay+a+higher+than+fair+rate.+However%2C+and+rather+surprisingly%2C+it+turns+out+that+this+does+not+necessarily+strengthen+the+case+for+public+insurance.&rft.publisher=TSE+Working+Paper&rft.date=2016-01&rft.type=Monograph&rft.type=NonPeerReviewed&rft.format=text&rft.language=fr&rft.identifier=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F19308%2F1%2FCremer_19308.pdf&rft.identifier=++Cremer%2C+Helmuth+%3Chttps%3A%2F%2Fwww.idref.fr%2F058485376%3E+and+Roeder%2C+Kerstin++(2016)+Social+insurance+with+competitive+insurance+markets+and+risk+misperception.++TSE+Working+Paper%2C+n.+16-615%2C+Toulouse+++++&rft.relation=http%3A%2F%2Ftse-fr.eu%2Fpub%2F30011&rft.language=en