X-Nico

unusual facts about moral hazard



James Mirrlees

Among other results, they demonstrated the principles of "moral hazard" and "optimal income taxation" discussed in the books of William Vickrey.


see also

National Asset Management Agency

" Professor Willem Buiter, Professor of political economy at the London School of Economics and former member of the UK Monetary Policy Committee, said: the Irish Government should have, in principle, gone for a good bank, not a bad bank.... The bad bank is always a bad idea because it means that the Government underwrites all the creditors and creates moral hazard."