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.
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.