This paper empirically analyzes moral hazard in car insurance using a dynamic theory of an insuree's dynamic risk (ex … ante moral hazard) and claim (ex post moral hazard) choices and Dutch longitudinal micro data. We use the theory to … characterize the heterogeneous dynamic changes in incentives to avoid claims that are generated by the Dutch experience …

should be given weak financial incentives. In a multiple-agent setting, this problem can be resolved using promotion … incentives. We test these predictions using German Socio-Economic Panel data. We find that workers who are more reciprocal are … significantly more likely to receive promotion incentives, while there is no such relation for individual bonus pay. …