๐”– Bobbio Scriptorium
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Optimal securitization with moral hazard

โœ Scribed by Barney Hartman-Glaser; Tomasz Piskorski; Alexei Tchistyi


Book ID
113711457
Publisher
Elsevier Science
Year
2012
Tongue
English
Weight
544 KB
Volume
104
Category
Article
ISSN
0304-405X

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When insurance firms can monitor with non-prohibitive costs the consumption of risk-influencing goods by an insured they have incentives to tax-subsidize the insured's consumption of the goods. If the government cannot monitor at a lower cost than private insurers, intervention is neither needed nor