There are a large number of cases where corruption has been discovered investigating levels of consumption that appear to be hard to justify. Yet, in the standard moral hazard model withholding of effort by the agent is not observable to the principal. We argue that this assumption has to be...

Patient cost-sharing for primary care and prescription drugs is designed to reduce the prevalence of moral hazard in utilization. Yet the success of this strategy depends on two factors: the elasticity of demand for those medical goods, and the risk of downstream hospitalizations by reducing...

The percentage of those uninsured in the U.S. has risen in recent years, although out-of-pocket expenditures have declined. At the same time, the obesity rate has significantly risen. We look at obesity in the context of a model in which the status of health insurance might play a role in...