Lindbeck, Assar; Persson, Mats - CESifo - 2006
A large literature on ex ante moral hazard in income insurance emphasizes that the individual can affect the … hazard ex post mainly analyzes how a “moral hazard constraint” can make the individual abstain from fraud (“mimicking”). The … present paper instead presents a model of moral hazard ex post without a moral hazard constraint; the individual's ability and …