Exact(27)
Moreover, QE may actually reduce moral hazard.
Contract design and reputation discipline may reduce moral hazard but cannot eliminate it.
(4) Risk-based deposit insurance premia can easily be used to reduce moral hazard problems associated with deposit insurance provision.
However, when longer duration contracts facilitate the exchange of relationship specific assets, the parties substitute short-term contracts with financial covenants in order to reduce moral hazard.
It also aims to reduce moral hazard and end the use of U.S. Treasury resources upon the failure of a systemically important financial company.
Making you responsible for a share of the costs, the argument runs, will reduce moral hazard: you'll no longer grab one of those free Pepsis when you aren't really thirsty.
Similar(33)
Although the introduction of cost-sharing in indemnity health insurance was designed to restrict health care expenditure by reducing moral hazard in medical utilization, cost-sharing lead to reduced access to medical service utilization for the poor.
A lack of a Lehman bailout only reduces moral hazard if investors think it is a preview of future actions.
Finally, ethical naturalism, which identifies the rightness or goodness of actions with, say, their tendency to promote happiness, thereby reduces moral facts to natural (e.g., psychological) ones.
Utilitarianism irritates people because it reduces moral deliberation to calculation, because it doesn't license high-minded high-falutin' rhetoric about virtues, values or respect for persons, and because it doesn't provide quick, easy answers to questions about the legitimacy of torture or other vexed moral issues.
This gets at, in a way, what the George Mason professor David Schleicher said in an e-mail to Felix Salmon a few weeks ago: A lack of a Lehman bailout only reduces moral hazard if investors think it is a preview of future actions.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com