moral hazard


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Related to moral hazard: Adverse selection
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  • noun

Words related to moral hazard

(economics) the lack of any incentive to guard against a risk when you are protected against it (as by insurance)

Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc.
References in periodicals archive ?
This is not just moral hazard, it is state-sanctioned injustice, which has given rise to another absurdity.
We also explored indications that excess reinsurance payments might be due to plan moral hazard. One of these indications is the distribution of enrollees' annual OOP spending, on which the catastrophic threshold is based.
MoviePass is "insuring" the financial risk of how many movies I see each month - which is wildly, massively susceptible to moral hazard. Once I know there's no cost to seeing another movie this month, I'm prone to see more movies this month, perhaps many more.
Since moral hazard explains why managerial compensation and firm performance should be connected, it is tempting to suggest that changes in the nature of moral hazard might have triggered these trends.
"The current requirements of voluntary enrollment and relatively short period of stay have led to cases of moral hazard as they stayed here for a short term and signed up for it at lower premiums before undergoing high-priced medical treatments and withdrawing from the program," the ministry official said.
Moral Hazard won by four lengths from David Brace's Pink Eyed Pedro, partnered by his 16-year-old grandson Connor Brace who, with four wins this season, is making a bold bid for the gentlemen novice riders' championship.
Moral hazard is something that occurs when someone increases their exposure to risk when insured.
The existing system of implicit deposit protection creates huge moral hazard. In order to reduce the moral hazard implicit in the present system and to protect small depositors, it is proposed to introduce an explicit depositor insurance schemes through DPC which will compensate depositors up to prescribed limited amount in case of a bank's failure.
The analysis of the individual moral hazard welfare effect of a medical care price decline was a topic of discussion in the literature during the last three decades of the previous century.
This is known as "moral hazard." In addition, when individuals who have a choice among insurance plans select their plan, those who are more likely to require care tend to choose more generous plans.
Moral hazard was being compounded by the market, most famously by the giant global insurer AIG.
In the literature on inter-organizational relationships, the phenomenon of moral hazard and opportunism has received a lot of interest (Heide & John, 1990; Rindfleisch & Heide, 1997; Lado et al., 2008).
"Moral Hazard" by Yang Xiao, NF '14, won in the best commentary category while "Where Are the Women?
Economists call it moral hazard: One party participates in an activity that produces benefit because another party bears the risk.