I reviewed today an interesting paper by one economist. It’s silly, but I fell in love with a site note, definition of the moral hazard:
Moral hazard: the party insured from the risk may behave differently from the way it would behave of it were fully exposed to the risk. It arises because an individual or institution does not bear the full consequences of its actions, and therefore has a tendency to act less carefully than it otherwise would, leaving another party to bear some responsibility for the consequences of those actions.
The contemporary society is full of market failures, such as moral hazards. Whether we are talking unemployment benefits or performing at the work. But we all should enjoy. Soon no one shouldn’t be talking, neither making politics with unemployment issues without studying the topic being discussed.
The groundbreaking report is about to be published in couple of weeks.