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Moral Hazard – The Peltzman Effect

The  Peltzman effect is about “moral hazard” — our tendency to take more risks when we’re insulated from the costs of that risk-taking.

If credit is cheap and easy, do we over-extend ourselves?

If we make cars safer, do people drive with less care and attention?

In an op-ed piece for the Washington Post, this columnist asks if societies’ measures to reverse drug overdoses actually enable drug addiction.

The ‘moral hazard’ of naloxone in the opioid crisis.




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