Introduction to social insurance:
Lecture 1 part 3
A Coggle Diagram about All together: Optimal Social Insurance, Types of moral hazard, How much redistribution?• From Social Efficiency to Social Welfare:, Social Welfare Function: A function that combines
the utility of all individuals into an overall social
utility function, Some social welfare functions, What determines moral hazard? and Why is moral hazard a problem?
If Wna-Wa is endogenous, insurance raises
the incentives to take on actions that agents
would not take without insurance