(Solved):It has been suggested that a substantial waiting period be created before a person can apply for Social Security Disability Insurance benefits. That is, establish a period, say 12 months, in which… View Answer…

 

Question

It has been suggested that a substantial waiting period be created before a person can apply for Social Security Disability Insurance benefits. That is, establish a period, say 12 months, in which a person has to be not working before he can apply for benefits. How would this waiting period affect the moral hazard problems associated with DI? Who would be most hurt by such a policy change?

 

EXPERT ANSWER

Within the

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