Moral hazard, monitoring costs, and opti
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Neil Bruce; Kar-Yiu Wong
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Article
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1996
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Springer
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English
โ 879 KB
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