Adverse selection, a concept economists devised to explain insurance market failures, might seem far removed from the grand chessboard of geopolitics. Yet at its core lies a simple and unsettling ...

Many real-world principal-agent problems have both moral hazard and adverse selection. Existing tools largely analyze only one problem at a time. In this talk Henrique Castro-Pires proposes a new ...

In life insurance, adverse selection describes the occurrence of individuals with a high-risk profession, hobby or health condition applying for life insurance more often than low-risk individuals.

Using data from 2009 to 2023 the study employs OLS and panel regression analyses to test hypotheses related to moral hazard. The findings suggest a complex relationship between government support NPLs ...

Adverse selection in health insurance is when sick people, who require greater health care coverage, buy health insurance, but healthy people do not. Adverse selection can present financial risks to ...

Moral hazard is an acute issue for Bangladesh's banking sector, since it stimulates excessive risk-taking and compounds the overflow of non-performing loans. A comprehensive approach that strengthens ...

Others have sought to disentangle the relative effects of adverse selection and moral hazard in private insurance, Medicare, and other markets, finding that moral hazard may, ...

We propose a model that extends Ghatak (1999)’s base group lending model by accounting for both peer selection and moral hazard. In particular, we allow individuals to differ in their exogenous risk ...

Finally contracting of track maintenance produced a “moral hazard” as seen in Great Britain, where several fatal, track-related derailments occurred due to faulty maintenance. ... Railroads often use ...

Moral hazard occurs in situations in which an economic agent chooses how much risk to take, while the potential negative consequences of these risky choices are (partly) borne by another party. The ...