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What does Moral Hazard mean?

The risk that a party has an incentive to take unusual risks because the costs are borne by others.

Moral Hazard in a sentence
Insurance policies can create a Moral Hazard by incentivizing riskier behavior.

Moral Hazard in German, French, Spanish and Italian

German
Moral Hazard
also Moralisches Risiko

Leichtsinniges Verhalten, wenn man gegen Risiken abgesichert ist.

French
Aléa moral
also Risque moral

Augmentation du risque quand on se sait protégé (assurance).

Spanish
Riesgo moral

Tendencia a correr más riesgos cuando otro asume el coste.

Italian
Azzardo morale

Incentivo a comportarsi in modo rischioso se si è protetti.

Common phrases with Moral Hazard

  • create moral hazard
  • incentivizing moral hazard
  • insurance moral hazard

Synonyms and opposites for Moral Hazard

  • Synonym Incentive problem

More Economics terms

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Moral Hazard is filed under