乔纳森·格鲁伯-财政学（第五版）gruber_5e_lecture_slides_ch12.pptxVIP

Copyright ? 2010 Worth Publishers 12Heather Luea and Dan SacksP R E P A R E D B Y12.1 What Is Insurance and Why Do Individuals Value It?12.2 Why Have Social Insurance? Asymmetric Information and Adverse Selection 12.3 Other Reasons for Government Intervention in Insurance Markets12.4 Social Insurance versus Self-Insurance: How Much Consumption Smoothing?12.5 The Problem with Insurance: Moral Hazard12.6 Putting It All Together: Optimal Social Insurance12.7 ConclusionSocial Insurance: The New Function of Government 12Social Insurance: The New Function of GovernmentPreamble to the United States Constitution: Establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity.For most of the country’s history, emphasis on “common defense.”Since 1950 or so, shift toward “the general welfare.” 12Government Spending by Function,1953 and 201419532014Defense 69.4%17.2%Disability and Unemployment5.014.7Social Security3.624.3Health0.426.4Other21.617.5Government today devotes a much larger portion of its budget to social insurance than it did 50 years ago. 12Social Insurance: The New Function of GovernmentGovernment spending now focuses on social insurance programs.Social insurance programs: Government interventions in the provision of insurance against adverse events.For most programs, eligibility is not means-tested.Means-tested: Refers to programs in which eligibility depends on the level of one’s current income or assets. 12.1Insurance is a promise to make some payment in case of a particular event, in exchange for a payment, called a premium.Insurance premiums: Money that is paid to an insurer so that an individual will be insured against adverse events.Insurance products in the United States include health insurance, auto insurance, life insurance, and casualty and property insurance.Annual private premiums for these products totals more than $1.6 trillion