Moral Hazard and Verifiability
Author: Benjamin Edward Hermalin
Publisher:
Published: 1990
Total Pages: 31
ISBN-13:
DOWNLOAD EBOOKRead and Download eBook Full
Author: Benjamin Edward Hermalin
Publisher:
Published: 1990
Total Pages: 31
ISBN-13:
DOWNLOAD EBOOKAuthor: Benjamin E. HERMALIN
Publisher:
Published: 1990
Total Pages:
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DOWNLOAD EBOOKAuthor: Benjamin Edward Hermalin
Publisher:
Published: 1989
Total Pages: 37
ISBN-13:
DOWNLOAD EBOOKAuthor: Murat Usman
Publisher:
Published: 2002
Total Pages: 0
ISBN-13:
DOWNLOAD EBOOKWe model the litigation of a contract containing a variable not observable by courts, hence non verifiable, unless the rational and self-interested judge exerts effort. He values the correct ruling but dislikes effort. Judicial effort is discretionary. We show that effort cost is inconsequential, - "always breach" is equilibrium for any effort cost. But there exists another equilibrium where a small breach rate is achieved even with significant effort costs. Maximal remedies for breach are not optimal. Because effort is discretionary, low effort cost increases breach. Pre-trial negotiations can have a substantial negative impact on verifiability under arbitrarily small deviations from full rationality.
Author: Anja Schöttner
Publisher:
Published: 2005
Total Pages: 190
ISBN-13:
DOWNLOAD EBOOKAuthor: Juan Flores Zendejas
Publisher: Routledge
Published: 2021-12-30
Total Pages: 167
ISBN-13: 1000515028
DOWNLOAD EBOOKMoral Hazard is a core concept in economics. In a nutshell, moral hazard reflects the reduced incentive to protect against risk where an entity is (or believes it will be) protected from its consequences, whether through an insurance arrangement or an implicit or explicit guarantee system. It is fundamentally driven by information asymmetry, arises in all sectors of the economy, including banking, medical insurance, financial insurance, and governmental support, undermines the stability of our economic systems and has burdened taxpayers in all developed countries, resulting in significant costs to the community. Despite the seriousness and pervasiveness of moral hazard, policymakers and scholars have failed to address this issue. This book fills this gap. It covers 200 years of moral hazard: from its origins in the 19th century to the bailouts announced in the aftermath of the COVID-19 outbreak. The book is divided into three parts. Part I deals with the ethics and other fundamental issues connected to moral hazard. Part II provides historical and empirical evidence on moral hazard in international finance. It examines in turn the role of the export credit industry, the international lender of last resort, and the IMF. Finally, Part III examines specific sectors such as automobile, banking, and the US industry at large. This is the first book to provide an interdisciplinary analysis of moral hazard and explain why addressing this issue has become crucial today. As such, it will attract interest from scholars across different fields, including economists, political scientists and lawyers.
Author: Inés Macho-Stadler
Publisher:
Published: 2016
Total Pages:
ISBN-13:
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Publisher:
Published: 2007
Total Pages:
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DOWNLOAD EBOOKAuthor: Florian Englmaier
Publisher:
Published: 2010
Total Pages: 50
ISBN-13:
DOWNLOAD EBOOKAuthor: Fouad Sabry
Publisher: One Billion Knowledgeable
Published: 2024-02-03
Total Pages: 579
ISBN-13:
DOWNLOAD EBOOKWhat is Moral Hazard The term "moral hazard" refers to a circumstance that occurs in the field of economics and describes a situation in which an economic actor has an incentive to expand its exposure to risk because it does not face the full costs of that risk. As an illustration, when a company is insured, it may be willing to take on additional risk since it is aware that its insurance will cover the costs connected with the risk. It is possible for a moral hazard to take place when, after a financial transaction has taken place, the actions of the party that is taking the risk change in a way that is detrimental to the party that is suffering the costs. How you will benefit (I) Insights, and validations about the following topics: Chapter 1: Moral hazard Chapter 2: Economic bubble Chapter 3: Debt Chapter 4: Contract theory Chapter 5: Adverse selection Chapter 6: Information asymmetry Chapter 7: Savings and loan crisis Chapter 8: Asset-backed security Chapter 9: Mortgage loan Chapter 10: Subprime mortgage crisis Chapter 11: Flight-to-quality Chapter 12: Subordinated debt Chapter 13: Subprime crisis impact timeline Chapter 14: Credit crunch Chapter 15: Subprime crisis background information Chapter 16: Interbank lending market Chapter 17: Government policies and the subprime mortgage crisis Chapter 18: Subprime mortgage crisis solutions debate Chapter 19: Securitization Chapter 20: Financial fragility Chapter 21: 2007-2008 financial crisis (II) Answering the public top questions about moral hazard. (III) Real world examples for the usage of moral hazard in many fields. Who this book is for Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Moral Hazard.