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Social Norms in Social Insurance

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  • Assar Lindbeck
  • Mats Persson

Abstract

We analyze how insurance arrangements, labor supply, moral hazard, and outright cheating are affected by social norms. One question is under what conditions norms may improve social welfare. Another is under what conditions people should be allowed to opt out of social insurance. We introduce an informal production sector to analyze the consequences of alternative assumptions about the information available to norm enforcers. This highlights one important aspect of norms, namely, that they may compensate for the insurer’s limited information.

Suggested Citation

  • Assar Lindbeck & Mats Persson, 2018. "Social Norms in Social Insurance," Journal of Political Economy, University of Chicago Press, vol. 126(S1), pages 116-139.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/698749
    DOI: 10.1086/698749
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    Cited by:

    1. Chantziaras, Antonios & Dedoulis, Emmanouil & Grougiou, Vassiliki & Leventis, Stergios, 2020. "The impact of religiosity and corruption on CSR reporting: The case of U.S. banks," Journal of Business Research, Elsevier, vol. 109(C), pages 362-374.
    2. Gill, Balbinder Singh, 2023. "Health uninsurance premium and mortgage interest rates," International Review of Financial Analysis, Elsevier, vol. 87(C).
    3. Jason Winfree & Philip Watson, 2021. "Buy Local and Social Interaction," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1454-1477, August.
    4. Xianghua Lu & Tian Lu & Chong (Alex) Wang & Ruofan Wu, 2021. "Can Social Notifications Help to Mitigate Payment Delinquency in Online Peer‐to‐Peer Lending?," Production and Operations Management, Production and Operations Management Society, vol. 30(8), pages 2564-2585, August.

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