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moral hazard

NOUN
  1. (economics) the lack of any incentive to guard against a risk when you are protected against it (as by insurance)
    insurance companies are exposed to a moral hazard if the insured party is not honest

How To Use moral hazard In A Sentence

  • The bankers have benefited from a stacked deck, or what's known as "moral hazard. Richard (RJ) Eskow: Foreclosures and Guilt: The "Home Loan Moral Hazard Scorecard"
  • Through establishing simple model, we analysis the moral hazard problem in different supervising levels of insurer and in different wealth levels of injurer.
  • I don't think that what we as central bankers are doing is a moral hazard in that we are not rescuing specific institutions and therefore not giving stimuli to other institutions to "misbehave" in the future. 'Mixed Feelings' From on High
  • His first instinct was to explain the risks of moral hazard rather than to stem contagion. Times, Sunday Times
  • This problem is sometimes called moral hazard, by analogy with insurance where the phenomenon is well known.
  • And he wrote about the moral hazard that seemed to him intrinsic to voyaging. The Times Literary Supplement
  • This problem is sometimes called moral hazard, by analogy with insurance where the phenomenon is well known.
  • The pattern of bailouts since 1995 has distorted the operation of financial markets by creating moral hazard.
  • However, we saw that problems of adverse selection and moral hazard would inhibit the organization of private insurance markets.
  • Saint Hayek was unequivocal in arguing for universal health care in Road to Serfdom, as it is a “genuinely insurable risk,” ie, no moral hazard. Matthew Yglesias » Obama at the House GOP Retreat
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