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Topic: Moral hazard

Related Topics

Adverse selection

Morality

Asymmetrical information

Political conservatism

Public good

Market failure

Natural monopoly

Externality

Price skimming

Altruism

Price discrimination

Unintended consequence

Information economics

Corporate governance

Sexual morality

	Moral hazard - Wikipedia, the free encyclopedia
		In law and economics, moral hazard is the name given to the risk that one party to a contract can change their behaviour to the detriment of the other party once the contract has been concluded.
		Because of these hazards, actuaries are careful to avoid insuring any property for more than it is worth, or even for its replacement cost, and almost always require that there be a deductible, an initial up-front sum which the insured must pay out of his or her own pocket.
		Abraham Lincoln was involved in a court case involving the moral hazard of a 19th-century Illinois law that exempted under-aged debtors from paying their debts.
	en.wikipedia.org /wiki/Moral_hazard (577 words)

	Moral hazard -- Facts, Info, and Encyclopedia article (Site not responding. Last check: 2007-10-08)
		The most well known examples of moral hazard come from (Promise of reimbursement in the case of loss; paid to people or companies so concerned about hazards that they have made prepayments to an insurance company) insurance.
		Moral hazard also appears in (The study of government of states and other political units) politics, for example, as it regards (Click link for more info and facts about anti-poverty transfer programs) anti-poverty transfer programs and similar programs.
		Arguments using moral hazards are used by both supporters and opponents of economic (The act of freeing from regulation (especially from governmental regulations)) deregulation.
	www.absoluteastronomy.com /encyclopedia/m/mo/moral_hazard.htm (627 words)

	Economic Issues No. 28--Moral Hazard: Does IMF Financing Encourage Imprudence by Borrowers and Lenders?
		Moral hazard is a term often used when analyzing the effects of insurance.
		Moral hazard is a forward-looking concept: where moral hazard exists in financial markets, borrowers and lenders take risks now based on the support they anticipate receiving in the future if certain undesirable events occur.
		As long as further evidence is needed to establish the magnitude of moral hazard, such action should proceed cautiously, weighing the possibility of moral hazard against other implications of the availability of IMF financing in alleviating the effects of crises.
	www.imf.org /external/pubs/ft/issues/issues28 (3749 words)

	Moral Hazard
		The moral hazard is staggering as the government continues to show that those who flout their legal obligations will be bailed out.
		The "moral hazard" theory argued that NL pitchers restricted their "beaning" because they didn't want to be hit themselves when they came up to bat.
		Moral hazard is the term thrown about to denote the effect created when people are continually shielded from the consequences of their own errors.
	finance.za-news.com /new/Moral_Hazard.html (2308 words)

	Finance & Development, June 2001 - IMF Financing and Moral Hazard
		Another way to look for evidence of moral hazard in emerging market interest rate spreads is through an approach (an event study, or "news," approach) that focuses on information that may have led to changes in moral hazard.
		In conclusion, while some element of moral hazard is a logical consequence of the availability of IMF financing, any policy implications must hinge on an assessment of the empirical significance of moral hazard.
		While the failure to identify clear evidence of moral hazard may reflect shortcomings in the tests used, it also highlights the weakness of the empirical foundations of many of the assertions made in policy debates.
	www.imf.org /external/pubs/ft/fandd/2001/06/lane.htm (1685 words)

	gladwell dot com - the moral hazard myth
		But moral hazard has profoundly shaped the way think tanks formulate policy and the way experts argue and the way health insurers structure their plans and the way legislation and regulations have been written.
		"Moral hazard" is the term economists use to describe the fact that insurance can change the behavior of the person being insured.
		If you are preoccupied with moral hazard, then you want people to pay for care with their own money, and, when you do that, the sick inevitably end up paying more than the healthy.
	www.gladwell.com /2005/2005_08_29_a_hazard.html (3629 words)

	Beneficiary Moral Hazard
		Moral hazard is a problem which occurs when a principal commissions an agent to act on his behalf, but the agent engages in shirking, pursues self interest to the detriment of the principal's interest, or indulges in dishonest or immoral behavior.
		A special case of moral hazard occurs when one party in good faith attempts to provide some possibility of benefit other parties, but finds that beneficiary parties take advantage of the possibility in ways not perceived by the provider and to the detriment of the provider, themselves, or innocent bystanders.
		In the cases of both flood and hurricane insurance, the moral hazard follows not from the availability of the insurance itself, but from the fact that the insurance is subsidized out of the public coffers.
	facweb.furman.edu /~dstanford/relecon/moralhaz.htm (1740 words)

	Moral Hazard and Adverse Selection (Site not responding. Last check: 2007-10-08)
		Moral hazard is the result of maximizing behavior.
		Moral hazard does not require that people intentionally cause the misfortune.
		Unintended consequences abound in the area of moral hazard.
	ingrimayne.saintjoe.edu /econ/RiskExclusion/Risk.html (874 words)

	Federal Reserve Bank of Minneapolis - The Region - Managing Moral Hazard With Market Signals: How Regulation Should ... (Site not responding. Last check: 2007-10-08)
		This behavior is not venal, despite its "moral hazard" designation; one need not conjure up images of bankers meeting to rip off taxpayers to understand how a firm would rationally react to the incentives created by mispricing.
		Moral hazard results when economic agents do not bear the marginal costs of their actions.
		In this environment, to rein in moral hazard effectively, the signals created by the market need to be incorporated in two general areas of regulation: deposit insurance assessments and the supervisory process.
	minneapolisfed.org /pubs/region/99-06/moral-hazard.cfm (4157 words)

	Review \| Moral Hazard and Flesh Tones (Site not responding. Last check: 2007-10-08)
		Forty-something Cath of Moral Hazard is also successful, a speech writer for a prominent Wall Street investment firm.
		Moral Hazard is a dark comedy, as focused on the high stakes world of Wall Street as well as the heartbreak of Alzheimer's.
		Moral Hazard and Flesh Tones are finally and undoubtedly love stories: not the newly-married, happily-ever-after kind so common in fiction, but the all-too-real, long-term kind, full of shared history and the necessary compromises that break our hearts.
	www.januarymagazine.com /fiction/moralflesh.html (637 words)

	Mad Socialism Disease - Mises Institute
		The moral hazard problems that resulted caused mad cow to spread well beyond what it otherwise would if market forces were allowed to respond to it.
		Moral hazard is the creation of perverse incentives in response to public or private policies.
		There is a huge difference, however, when moral hazard results from government funding and regulation, which happens in the cattle industry when farmers divert resources from satisfying consumers toward satisfying (and influencing) regulators.
	www.mises.org /fullstory.asp?control=1411 (1421 words)

	Moral Hazard and the Survival Value of Risk
		Moral hazard is the risk that the behaviour of an economic player will change as a result of the alleviation of real or perceived potential costs.
		Moral hazard must be balanced, in the real world, against more ominous and present threats, such as contagion and systemic collapse.
		The residual cost of moral hazard is spread among the insured in the form of higher premiums.
	samvak.tripod.com /pp150.html (2669 words)

	SurfWax: News, Reviews and Articles On Moral Hazard
		The issue of the moral hazard has been dealt with over many years, but the international community has effectively decided that, in the case of the highly indebted poor countries, the debts are effectively unpayable and that we should recognize the situation as it now exists.
		We argue that the concept of "cognitive hazard" - the potential for the costs of a bias to increase as individuals are insulated from the adverse effects of the bias - should be added to the concept of moral hazard as important qualifications to paternalistic proposals.
		These were to ensure there is no moral hazard (or, in other words, make sure that companies are not dumping their pension liabilities on to the Pension Protection Fund); to maximise the recovery of any deficit; and to safeguard jobs where possible...
	economics.surfwax.com /files/Moral_Hazard_Business.html (4618 words)

	MRB: Moral Hazard: A Novel
		"Moral Hazard" is a unique story, both moving and incisive as it explores the worlds of trade and sickness with insight, compassion, and humor.
		Moral Hazard by Kate Jennings - read review - Read a review of Moral Hazard by Kate Jennings at Mostly Fiction, a novel which explores the world of high finaance and poor heath, specifically Alzheimer's disease.
		Based on the acclaimed bestselling novel by Kate Jennings, MORAL HAZARD is the moving memoir of a young woman who takes a job at a Wall Street firm to support her ailing husband.
	www.medical-research-books.com /mrb-books-reviewed/0007141084.html (1865 words)

	Moral Hazard - Kate Jennings
		Moral Hazard explores not one but two horrors of the modern world: international high finance and Alzheimer's disease.
		Moral Hazard is an indictment of modern high finance -- morally bankrupt, with a misguided belief in the market, ultimately as helpless (and disgusting, in every respect) as the Alzheimer's patient in the final stages of his disease.
		Discussing "quants" -- the "math pointy-heads" -- Cath hazards on the origins of the term: "from the word 'quantum,' I'd guess." Why she would guess this is unclear.
	www.complete-review.com /reviews/austnz/jennink.htm (1728 words)

	Moral Hazard
		The risk that a party to a transaction has not entered into the contract in good faith, has provided misleading information about its assets, liabilities or credit capacity, or has an incentive to take unusual risks in a desperate attempt to earn a profit before the contract settles.
		Moral hazard can be present any time two parties come into agreement with one another.
		Moral hazard can be somewhat reduced by the placing of responsibilities on both parties of a contract.
	baystreet.investopedia.com /terms/m/moralhazard.asp (155 words)

	Encyclopedia: Moral hazard
		This section is studied by Argagui monopoli In law and economics, moral hazard is the name given to the risk that one party to a contract can change their behaviour to the detriment of the other party once the contract has been concluded.
		Look up Politics on Wiktionary, the free dictionary Politics (disambiguation) Democracy History of democracy List of democracy and elections-related topics List of years in politics List of politics by country articles Political corruption Political economy Political movement Political parties of the world Political party Political psychology Political sociology Political...
		An act of war - the atomic bombing of Nagasaki, Japan during World War II War is a state of widespread conflict between states, organisations, or relatively large groups of people, which is characterised by the use of violent, physical force between combatants or upon civilians.
	www.nationmaster.com /encyclopedia/Moral-hazard (1225 words)

	Moral Hazard a capella group
		Moral Hazard is a co-educational group comprised of law students who harmonize, taking a break from the studies of the adversarial system.
		Moral Hazard was founded at GULC in 199?, by members of the Georgetown Gilbert & Sullivan Society who wanted to sing more.
		Moral Hazard performs at the Law Center various times throughout the academic year.
	www.angelfire.com /md/moralhazard (234 words)

	Mr. Moral Hazard
		The phrase of the day is "moral hazard." It's something everyone seems to think is a bad thing, but few are willing to do anything about, certainly not Alan Greenspan.
		Somehow, consistent with the mirages daily created by the Fed, Greenspan is still perceived as an old-school capitalist who wants the chips to fall where they may. In public appearances, he's even explained and criticized the moral hazard inherent in bailouts, loose credit, and financial leniency in general.
		In effect, he says, central bankers and government officials should never encourage it, losses should be born by the risk-taker, banks and hedge funds should be on their own, unless, of course, conditions are not ideal.
	www.mises.org /freemarket_detail.asp?control=48&sortorder=articledate (1128 words)

	Trinity College - Steep Stairs Review (Site not responding. Last check: 2007-10-08)
		This is particularly unfortunate in Moral Hazard when the dictates of style jar with the overt content of a love story exploring the painful onset of memory loss and physical debilitation: "He raged, pounded walls, accused me of all kinds of perfidy.
		The stunned sense of loss at the heart of Moral Hazard resounds with the horrors faced - like the unexpected onslaught of Alzheimer's - by a shocked city after the sudden attack, and then the dramatic, irreversible, crumbling of the World Trade Center on September 11, when all that was solid melted into air.
		But with Moral Hazard the punchy sentences lose their impact when the writing occasionally degenerates to listing names of bankrupted companies or financial scandals that are meant to speak for themselves - such as the Asian meltdown, the Russian loan default, the crisis in hedge funds, or the dot-com bust.
	www.trinity.unimelb.edu.au /publications/literature/volume2/review01.shtml (1036 words)

	Revisiting Teaching Moral Hazard: (Site not responding. Last check: 2007-10-08)
		The authors previously presented results of their attempt to make moral hazard more real to beginning economics students by inducing their own demonstration of it through their behavior regarding exams.
		Additionally, moral hazard will exist when the party with superior information alters his behavior in such a way that benefits himself while imposing costs on those with inferior information (Pauly, 1974).
		Therefore a student received instruction regarding moral hazard and was promptly told that they would receive a minimum grade on the next chapter quiz.
	www.marietta.edu /~delemeeg/expernom/Fall2001/campbell.html (2139 words)

	Reducing moral hazard of SA's bailout package
		And that is where the problem lies: the moral hazard created by such rescue packages and what SA could do to minimise it.
		But for Zimbabweans there is also a further moral hazard and that is why SA should also be concerned with their views.
		It is this moral hazard that SA ought to consider in its relations with Zimbabwe.
	www.newzimbabwe.com /pages/mbeki25.13015.html (2064 words)

	Federal Reserve Bank of Minneapolis - The Region - Asking the Right Questions About the IMF (1998) (Site not responding. Last check: 2007-10-08)
		We argue that bailouts lead to rampant moral hazard problems and that a lender of last resort which acts solely as a liquidity provider can contain financial panics effectively and efficiently.
		Concern that the virtual 100 percent guarantee to uninsured depositors was leading to moral hazard led Congress to pass the Federal Deposit Insurance Corp. Improvement Act in 1991.
		Although these new hurdles are an important step in mitigating moral hazard, Feldman and Rolnick (1997) argue that these hurdles are not yet high enough, and they give specific proposals on how they should be raised.
	minneapolisfed.org /pubs/ar/1998/ar1998.cfm (8526 words)

	Moral Hazard by Kate Jennings, a RebeccasReads.com Interview/Interview with Rebecca Brown
		I began Moral Hazard wanting to write a novel that was set in New York City -- not the New York City of twenty-somethings -- clubs, love affairs, drugs -- but the often harsh, sometimes hilarious world of work, of adults navigating personal and professional obligations.
		The structure of Moral Hazard, with Cath's personal life illuminating her public life and vice versa, comes directly from a deeply held belief we had in those years: The personal is political.
		Moral Hazard is written in a memoir form -- I felt as if you were indeed telling your own story.
	rebeccasreads.com /interviews/authors/071402_jennings_interview.html (1321 words)

	Deinonychus antirrhopus: Moral Hazard (Site not responding. Last check: 2007-10-08)
		Moral hazard: when insurance companies rather than patients bear the marginal costs of treatments, there is an incentive to overtreat--except where treatment has public-health external benefits, and except where the insurer has written the contract to control utilization.
		There are ways limit the moral hazard problem which include not insuring for replacment cost (say with automobile insurance) or with deductibles.
		Wealth redistribution can have the same moral hazard problem as well.
	www.steveverdon.com /archives/healtheconomics/002074.html (1453 words)

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