Moral hazard is the risk that a party has not entered into a contract in good faith or has provided misleading information about itsassets,liabilities, orcredit capacity. In addition, moral hazard also may mean a party has an incentive to take unusual risks in a desperate attempt to earn ap...
Moral hazard: Economic meaning of the conditions justifying the first-order approachIt is shown that the condition justifying the use of the agent's first-order condition to describe his optimal action in a principal-agent situation with pure moral hazard is related to, but not the same as, ...
A moral hazard in economics is a risk that a person or business is willing to take because the negative effects will not be felt by those taking the risk. Learn more about moral hazards and their origins in economics, and consider a few examples. Related...
There’s an important term that is often tossed around in civil discourse about economics: “moral hazard.” Moral hazard refers to the elevated risks one party might take in an economic transaction because another party will bear the negative consequences of those risks. We heard a lot about ...
Moral hazard and adverse selection are both terms used in economics, risk management, and insurance to describe situations where one party is at a disadvantage to another. Moral hazard occurs when one party entering into the agreement provides misleading information or changes their behavior afte...
Holmstrom, B.: Moral Hazard in Teams. Bell Journal of Economics 13, 324–340 (1982) CrossRef Itoh, H.: Incentives to Help Multi-Agent Situations... M Babaioff,M Feldman,N Nisan - 《Journal of Artificial Intelligence Research》 被引量: 15发表: 2014年 The Labor Supply Consequences of Em...
citizens. There is an old saying "you can never do just one thing"—meaning that there may be many indirect and unintended consequences associated with your actions, and these unanticipated effects may outweigh what you intended to do. Thus, a moral hazard may be the lesser hazard in some ...
Pauly's (1968) [Pauly, M., 1968. The economics of moral hazard, Comment, American Economic Review 58, 531-537.] analysis of the welfare loss from insurance... JA Nyman - 《Journal of Health Economics》 被引量...
Posted inEasy money,Economics,Federal Reserve,Monetary Policy,Moral Hazard,Politicians,Public Choice, taggedEasy money,Economics,Federal Reserve,Monetary Policy,Moral Hazard,Politicians,Public Choiceon August 10, 2024|5 Comments » Why do politicians such asDonald TrumpandKamala Harrisshow no interest ...
As Doherty (1997) and Doherty and Smetters (2005) point out, reinsurers cannot observe all of an insurer’s underwriting behavior, which can lead insurers to underwrite generously (ex-ante moral hazard) or pay claims in a sloppy manner (ex-post moral hazard). Doherty and Smetters (2005)...