Reserve accumulation, inflation, and moral hazard: Evidence from a natural experiment
نویسندگان
چکیده
This study tests whether international reserve accumulation is inflationary because of moral hazard and incentive effects. We use the 2009 allocation Special Drawing Rights (SDR) as a natural experiment to trace effect an exogenous nonmonetary shock on International Monetary Fund members' holdings. In countries that received large SDR allocations, inflation was about half percentage point higher in 2 years following allocation, controlling for other standard determinants. commensurate with size these countries' discretionary fiscal deficits. result consistent hypothesis may be
منابع مشابه
Moral hazard and selection among the poor: evidence from a randomized experiment.
Not only does economic theory predict high-risk individuals to be more likely to purchase insurance, but insurance coverage is also thought to crowd out precautionary activities. In spite of stark theoretical predictions, there is conflicting empirical evidence on adverse selection, and evidence on ex ante moral hazard is very scarce. Using data from the Seguro Popular Experiment in Mexico, thi...
متن کاملRepeated moral hazard and contracts with memory: A laboratory experiment
This paper reports data from a laboratory experiment on twoperiod moral hazard problems. The findings corroborate the contract-theoretic insight that even though the periods are technologically unrelated, due to incentive considerations principals can benefit from offering long-term contracts that exhibit memory.
متن کاملMoral Hazard in Natural Disaster Insurance Markets: Empirical evidence from Germany and the United States
Moral hazard in natural disaster insurance markets has the effect that policyholders prepare less for disasters, which increases the risk they face. However, moral hazard may not arise due to high risk aversion of insured individuals and/or the inherent insurance market context. We offer a comprehensive empirical study of the relation between disaster risk reduction and insurance coverage to as...
متن کاملEconomic Literacy and Inflation Expectations: Evidence from a Laboratory Experiment
We present new experimental evidence on heterogeneity in the formation of inflation expectations and relate the variation to economic literacy and demographics. The experimental design allows us to investigate two channels through which expectations-formation may vary across individuals: (1) the choice of information and (2) the use of given information. Subjects who are more economically liter...
متن کاملTeamwork and Moral Hazard: Evidence from the Emergency Department
All us I investigate how teamwork may reduce moral hazard by joint monitoring and management. I study two organizational systems differing in the extent to which physicians may mutually manage work: Physicians are assigned patients in a “nurse-managed” system but divide patients between themselves in a “self-managed” system. The self-managed system increases throughput productivity by reducing ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: International Finance
سال: 2021
ISSN: ['1367-0271', '1468-2362']
DOI: https://doi.org/10.1111/infi.12391