Optimal long-term contracts with disability insurance under limited commitment (Q2138619)
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| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Optimal long-term contracts with disability insurance under limited commitment |
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Optimal long-term contracts with disability insurance under limited commitment (English)
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12 May 2022
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The paper focuses on an optimal long-term labor contract that provides disability insurance benefits in case the agent cannot commit to a long-term contract and the disability shock is private information. After describing the first-best contract, the study aims at modelling its technical characteristics and as well as its analytical treatment. Then the optimal contract is deepened with a view to the interpretation and practical application; the model presented is compared to existing practices of LTD insurances, Technical details and proofs are included in the appendix.
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disability insurance
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limited commitment
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truth-telling
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dynamic contracting
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incentives
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