{"title":"Optimal Partial and Full Disability Insurance with an Application to Korea","authors":"Kyung-woo Lee","doi":"10.22841/KERDOI.2019.35.1.003","DOIUrl":"https://doi.org/10.22841/KERDOI.2019.35.1.003","url":null,"abstract":"In this paper, I investigate the optimal disability insurance (DI) when partial and full disability are privately observed over the life cycle. I demonstrate that in the social optimum, partially disabled agents are induced to supply labor despite substantial government transfers unless labor supply is relatively elastic and their productivity is significantly reduced. I then apply the framework to quantitatively evaluate Korea’s DI programs, which include partial and full disability benefits. In the calibrated model, I find that welfare gains from replacing Korea’s DI programs with the corresponding optimal system amount to a 1.17% increase in consumption. Such a reform significantly raises the utility of both types of disabled agents at relatively small utility costs of able agents. Equity gains from this redistribution account for 73.4% of the total welfare gains, whereas efficiency gains from the optimal allocation account for 26.6%.","PeriodicalId":426169,"journal":{"name":"The Korean Economic Review","volume":"137 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115625342","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Review on difference in differences","authors":"Myoung‐jae Lee, Y. Sawada","doi":"10.22841/KERDOI.2020.36.1.005","DOIUrl":"https://doi.org/10.22841/KERDOI.2020.36.1.005","url":null,"abstract":"Difference in differences (DD) is one of the most popular approaches in economics and other disciplines of social sciences. This paper provides a review on the basics and recent advances in DD from a personal perspective. Details on DD identification and estimation using panel data and repeated cross-sections are provided for various DD cases such as constant/time-varying effect or constant/time-varying treatment timing. Following these basics on DD, topics such as ‘DD in reverse’, fuzzy DD, synthetic control, and triple and generalized differences are examined. Many empirical examples in various areas of economics are provided for illustration.","PeriodicalId":426169,"journal":{"name":"The Korean Economic Review","volume":"44 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125517057","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}