Moral hazard is also an unavoidable consequence of any insurance. For example, insuring motorists clearly contributes to the frequency of accidents: if such insurance were banned, drivers would surely ...

Using a regression discontinuity approach, we uncover three findings: (1) Higher benefit levels distort employment more than benefit extensions. (2) Benefit durations and levels interact: Longer ...

Hall, Brian J., and James G. Bohn. "The Moral Hazard of Insuring the Insurers." In The Financing of Catastrophe Risk, edited by Kenneth A. Froot. Chicago: University of Chicago Press, 1999.

So what could be the scale of the costs of moral hazard associated with the IMF's operations? First, consider an analogy. In the mid-1930s, the United States became the first country to establish a ...

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 ...

Tony Müdd discusses what over-insurance for inheritance tax (IHT) might look like and why it makes sense for the life ...

We examine the existence of adverse selection and moral hazard in the corporate insurance market empirically. While natural disasters hit households and firms alike, corporate insurance against ...