Working Papers, Department of Economics, Lund University
Imperfect Tagging Revisited
Abstract: Revisiting Parsons' 1996 article about disability
insurance with imperfect tagging in a two type-economy -- individuals are
either able or disabled. Here Parsons' analysis is extended in several
directions. The model is generalized to allow for different utility
functions over work status. The analysis extends to three different cases
of a two-type economy. Finally Parsons' model is extended to three types:
able, partially disabled and disabled - adapting the model to disability
insurances allowing for more than two degrees of disability. The results
are consistent with Parsons', but a complete ranking of the consumption
allocations cannot be achieved in the general case.
Keywords: social insurance; imperfect tagging; partial disability; (follow links to similar papers)
JEL-Codes: H21; H53; (follow links to similar papers)
36 pages, February 19, 2007
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