Moral Hazard

What is Moral Hazard

The term "moral hazard" refers to a circumstance that occurs in the field of economics and describes a situation in which an economic actor has an incentive to expand its exposure to risk because it does not face the full costs of that risk. As an illustration, when a company is insured, it may be willing to take on additional risk since it is aware that its insurance will cover the costs connected with the risk. It is possible for a moral hazard to take place when, after a financial transaction has taken place, the actions of the party that is taking the risk change in a way that is detrimental to the party that is suffering the costs.

How you will benefit

(I) Insights, and validations about the following topics:

Chapter 1: Moral hazard

Chapter 2: Economic bubble

Chapter 3: Debt

Chapter 4: Contract theory

Chapter 5: Adverse selection

Chapter 6: Information asymmetry

Chapter 7: Savings and loan crisis

Chapter 8: Asset-backed security

Chapter 9: Mortgage loan

Chapter 10: Subprime mortgage crisis

Chapter 11: Flight-to-quality

Chapter 12: Subordinated debt

Chapter 13: Subprime crisis impact timeline

Chapter 14: Credit crunch

Chapter 15: Subprime crisis background information

Chapter 16: Interbank lending market

Chapter 17: Government policies and the subprime mortgage crisis

Chapter 18: Subprime mortgage crisis solutions debate

Chapter 19: Securitization

Chapter 20: Financial fragility

Chapter 21: 2007-2008 financial crisis

(II) Answering the public top questions about moral hazard.

(III) Real world examples for the usage of moral hazard in many fields.

Who this book is for

Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Moral Hazard.

Dettagli