Explore the differences between moral and morale hazards, and their impact on insurance behavior and policy design.

Written by Peter H. Swan, Ph.D. The railroad industry is in crisis. Many people outside and inside the industry are quick to blame its current state on Precision Scheduled Railroading (PSR) and Wall ...

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 ...

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 ...

When the 2008 financial crisis pushed the global economy to the brink, governments intervened with massive taxpayer-funded bailouts for banks deemed “too big to fail.” This sparked a furious debate: ...

This was a particularly egregious example of the currently fashionable economics term "moral hazard"—the idea that a person should pay for their voluntary bad decisions, whether it be failing to ...

Removing carbon dioxide emissions from the atmosphere to prevent global warming from becoming catastrophic may be a fool’s game amounting to a “moral hazard par excellence,” according to a paper ...