Logo
Munich Personal RePEc Archive

Social wealth and optimal care

Darri-Mattiacci, Giuseppe and Langlais, Eric (2008): Social wealth and optimal care.

[thumbnail of MPRA_paper_9418.pdf]
Preview
PDF
MPRA_paper_9418.pdf

Download (218kB) | Preview

Abstract

Many accidents result in losses that cannot be perfectly compensated by a monetary payment. Moreover, often injurers control the magnitude rather than the probability of accidents. We study the characteristics of optimal levels of care and distribution of risk under these circumstances and show that care depends on the aggregate wealth of society but does not depend on wealth distribution. We then examine whether ordinary liability rules, regulation, insurance, taxes and subsidies can be used to implement the first-best outcome. Finally, our results are discussed in the light of fairness considerations (second best).

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.