moral hazard
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Liquidity Protection Versus Moral Hazard: The Role of the IMF
White Paper A game between the IMF a country and atomistic private investors is motivated by recent crises including Argentina. The one stage game has no Nash equilibrium in pure strategies. Considering an equilibrium in mixed strategies, conditions are... [19 Jul 2005]
Fostering Within-Familiy Human Capital Investment: An Intragenerational Insurance Perspective of Social Security
White Paper Real world social security systems can be interpreted as the full insurance solution to a moral hazard problem that has to trade off incentives to invest in the education of one's children against the risk that arises from the fact that there is a... [07 Jul 2005]
Co-Ordination Failure, Moral Hazard and Sovereign Bankruptcy Procedures
White Paper This paper studies a model of sovereign debt crisis that combines problems of creditor coordination and debtor moral hazard. In the face of sovereign default, the need to give appropriate incentives to the debtor leads to excessive 'rollover... [25 May 2005]
Moral Hazard and US Stock Market: Is There a 'Greenspan Put'?
White Paper The risk premium in the US stock market has fallen far below its historic level, which Shiller attributes to a bubble driven by psychological factors. As an alternative explanation, this paper points out that the observed risk premium may be... [25 May 2005]
World Finance and the US "New Economy": Welfare Efficiency and Moral Hazard
White Paper Promises of a 'New Economy' in the US attracted substantial equity inflows in the late 1990s - more than enough to finance the current account US deficit. Since their peak in 2002, however, US stocks have fallen in value by some 8 trillion dollars. [25 May 2005]
Managing Financial Crises in Developing Countries: New Developments in Review
White Paper The paper compares these two proposals in a context where problems of creditor coordination interact with those of debtor incentives - "debtor moral hazard. This paper begin with a summary of the current debate on sovereign debt restructuring... [25 May 2005]
Bank Bailouts: Moral Hazard vs. Value Effect
White Paper This paper shows that Central bank, by announcing and committing ex-ante to a bailout policy that is contingent on the realization of certain states of nature(for example on the occurrence of an adverse macroeconomic shock), creates a risk... [25 Feb 2004]
Monitoring, Moral Hazard, and Market Power: a Model of Bank Lending
White Paper This paper examines the interaction between bank market power, loan interest rates, and bank risk in a model of lending characterized by overlapping moral hazard problems between borrowers and banks, and between banks and a government guarantor of... [25 Feb 2004]
Global Moral Hazard, Capital Account Liberalization and the Overlending Syndrome
White Paper The removal of government guarantees in borrowing countries does not eliminate the moral hazard problem posed by the existence of deposit guarantees in lender countries. The paper shows that, after restrictions on international capital flows are... [25 Feb 2004]
Contract-Theoretic Approaches to Wages and Displacement
White Paper Models of moral hazard in labor relationships have proven to be useful in explaining a variety of important macroeconomic phenomena. This paper focuses on the contract-theoretic underpinnings of wage adjustment and worker displacement in moral... [25 Feb 2004]
A Model of the Lender of Last Resort
White Paper Key results are that if contagion (moral hazard) is the main concern, the Central Bank (CB) will have an excessive (little) incentive to rescue banks and the resulting equilibrium risk level is high (low). [25 Feb 2004]
Public Debt Management and Bailouts
White Paper The moral hazard aspect of defaults is also shown to be important in determining an optimal government debt strategy. This paper addresses how public debt should be managed to reduce the cost of private sector bailouts. [25 Feb 2004]
Going Public with Asymmetric Information, Agency Costs and Dynamic Trading
White Paper Moreover, insiders divest shares gradually over time, at a rate that is negatively related to the degree of moral hazard.We argue that this model of outside equity is empirically relevant and can be important in understanding the workings of... [25 Feb 2004]
Smut and scams infest kids’ inboxes
News Symantec characterised spam as a new summer hazard, along with sunburns and snakebites. The results back up common complaints of parents and legislators, who describe a trend in which the volume of spam increases without a concurrent rise in moral... [10 Jun 2003]
