Difference between revisions of "Moral Hazard"
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Latest revision as of 11:30, 11 May 2021
Definition
Moral Hazard is a change of behaviour induced by the realization by an individual that they do not have to bear all the costs associated with his or her actions.
Examples
Examples of moral hazard can range from poor management or carelessness to fraud. People may also take excessive risks in order to obtain higher returns, in the confidence that they are assured government support.