Belhaj, Mohamed; Renaud Bourl?s; Fr?d?ric Dero?an - In: American Economic Journal: Microeconomics 6 (2014) 1, pp. 58-90
This paper explores the effect of moral hazard on both risk-taking and informal risk-sharing incentives. Two agents invest in their own project, each choosing a level of risk and effort, and share risk through transfers. This can correspond to farmers in developing countries, who share risk and...