To the despair of almost every informed economist, by New Year’s Day, Medicare recipients who want coverage for 2006 will have chosen a prescription drug plan. Even the former chairman of the ...

Desperate times call for desperate measures. In recent years and in the face of unprecedented changes in the climate system, some previously unknown and risky solutions have been proposed to put a ...

Florida’s home insurance market has long been a mess. With private property insurance getting scarcer and more expensive, some members of the legislature are pushing for an even greater role for the ...

I want to revisit the subject of moral hazard and the financial crisis, which I posted about yesterday, because I think the argument I made has been misunderstood in an important way, and because I ...

Why would a big bank with so much at stake not care about the risks that they were taking? Well, at that point, they'd all been bailed out. I mean, my feeling at that point was, well, of course they ...

We study a two-period moral hazard problem with risk-neutral and wealthconstrained agents and three identical tasks. We show that the allocation of tasks over time is important if there is a capacity ...

To date we have taken apart the firm and examined where institutions offer no advantage over bargaining by individuals, or relying on the price mechanism. We have seen two early explanations for ...

At a time when the American Left wants to introduce Swedish-style socialism into the U.S., we should remember that generous welfare states pose a moral hazard. Their well-intentioned policies ...

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated. “Moral hazard” is a well-established ...