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moral hazard
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moral hazard


The legislation raises moral hazard concerns.
  the presence of incentives for individuals to act in ways that incur costs that they do not have to bear;

For example:  If the government is counted on to reimburse people with flood damage, there is less incentive for people to buy insurance or avoid building in flood-prone areas.
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moral hazard moral hazards
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Samples:
  • The legislation raises moral hazard concerns.
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Associated words [difficulty]:   moral hazard , loophole [4] , affirmative action [6] , global warming [6] , hard money [6] , Big Brother [7] , OPEC [8] , privatization [9]
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Most commonly used in these subjects:   Public Policy & Politics, Business, Personal Finance
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