Public Insurance and Private Markets

  • Title:

    Public Insurance and Private Markets
  • Edited By:

    Jeffrey R. Brown
  • Format:

    HardCover
  • Hardcover Price:

    49.95
  • Hardcover ISBN:

    978-0-8447-4325-7
  • Hardcover Dimensions:

    6" x 9"
  • 244 Hardcover pages
  • Buy the Book

Click here to purchase this book on Amazon

As America debates the merits of government-provided health insurance, it is important to note that the U.S. government is already the largest insurance provider in the world. For decades, it has used taxpayer funds to support the world’s largest health insurance programs (Medicare and Medicaid) as well as the biggest pension and disability insurance system (Social Security). The recent economic crisis has prompted the government to dramatically increase its insurance role by assuming large equity positions in private firms and bailing out troubled mortgage buyers and sellers. Do public insurance programs improve social welfare? Or does government intervention risk moral hazard and result in inefficient programs that would be better handled by the private sector?

In Public Insurance and Private Markets, leading economists critically examine the government’s role in insuring against pension fund shortfalls, crop losses, property damage from floods and other natural catastrophes, bank failures, and terrorism. Jeffrey R. Brown and his coauthors argue that government intervention must always be economically justified; that risk-adjusted premiums are essential; that the true taxpayer burden for public insurance programs must be recognized; and that private markets are capable of transferring risk with limited government intervention.

Poorly designed government insurance programs result in misallocation of resources, excessive risk-taking, and potentially enormous burdens on current and future taxpayers. Public Insurance and Private Markets offers market-based guidelines for the proper scope of government intervention and the design of public insurance programs--guidelines that will benefit the U.S. economy and protect the resources of future generations.

Jeffrey R. Brown is professor of finance, William G. Karnes Professor of Finance, and director of the Center for Business & Public Policy at the University of Illinois, Urbana-Champaign.

Contributors: Andrew G. Biggs, Jeffrey R. Brown, Mark J. Browne, Barry K. Goodwin, Martin Halek, Dwight Jaffee, Howard C. Kunreuther, Erwann O. Michel-Kerjan, George G. Pennacchi, Thomas Russell, and Vincent H. Smith

Also Visit
AEIdeas Blog The American Magazine

What's new on AEI

Making Ryan's tax plan smarter
image The teacher evaluation confronts the future
image How to reform the US immigration system
image Inversion hysteria
AEI on Facebook
Events Calendar
  • 01
    MON
  • 02
    TUE
  • 03
    WED
  • 04
    THU
  • 05
    FRI
Wednesday, September 03, 2014 | 9:00 a.m. – 10:30 a.m.
From anarchy to Augustus: Lessons on dealing with disorder, from Rome’s first emperor

We invite you to join us for two panel discussions on how Augustus created order from chaos 2,000 years ago, and what makes for durable domestic and international political systems in the 21st century.

Wednesday, September 03, 2014 | 12:00 p.m. – 1:30 p.m.
Multiple choice: Expanding opportunity through innovation in K–12 education

Please join us for a book launch event and panel discussion about how a marketplace of education options can help today's students succeed in tomorrow's economy. Attendees will receive a complimentary copy of the featured book.

Thursday, September 04, 2014 | 12:00 p.m. – 1:30 p.m.
How conservatives can save the safety net

Please join us for a luncheon event in which our panel will discuss what conservatives can learn from how liberals talk and think about the safety net and where free-market economics, federalism, and social responsibility intersect to lift people out of poverty.

No events scheduled this day.
No events scheduled today.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.