Risk, Uncertainty and Moral Hazard

Resource type
Date created
1971
Authors/Contributors
Abstract
This paper gives precision o the meaning of the term "moral hazard". It then analyses the implications which the phenomenon of moral hazard has on the welfare effects of public insurance schemes and the present shortage of medical doctors and hospitals in the United States. I concludes that the existence of moral hazard does not necessarily invalidate the case for welfare increasing public provision of insurance as Pauly has claimed in his criticism of Arrow. Finally, the analysis explores the implications the phenomenon of moral hazard has for Knight's famous distinction between risk and uncertainty.
Document
Published as
Grubel, H. G.. (1971). Risk, Uncertainty and Moral Hazard. The Journal of Risk and Insurance, 38(1), 99–106.
Publication title
The Journal of Risk and Insurance
Document title
Risk, Uncertainty and Moral Hazard
Date
1971
Volume
38
Issue
1
First page
99
Last page
106
Copyright statement
Copyright is held by the author(s).
Scholarly level
Peer reviewed?
Yes
Language
Member of collection
Attachment Size
Grubel-Risk.pdf 3.71 MB