Article Abstract:
Policy shifts enacted by a government result in either gains and losses for investors depending on the superseded laws. To alleviate their impact, the government provides relief either through direct compensation, grandfather clauses or delayed implementation. However, such risk mitigation actions often have a negative effect on ex ante investment incentives and risk spreading. This is borne out by a mathematical model of compensation that also considered the availability of market relief through insurance.
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Article Abstract:
The composition of family units has a significant effect on income tax burdens, welfare payments and social security benefits. There is much debate regarding the appropriate forms of adjustment as evidenced by the diversity in methods among programs, across jurisdictions and through time. A utilitarian welfare function was used to derive the equitable income distribution for various family configurations.
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Article Abstract:
The optimal insurance contract for multiple risks is analyzed. Second-best insurance contracts are considered the solution to cases where different contracts are required for different losses. Such contracts provide low indemnities for high agreggate losses and high indemnities for small single losses. Premiums are also found to be lower for second-best separate insurance policies.
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