Late in life Adam Smith observed that government institutions can never tame and regulate a society whose citizens are not schooled in a common set of virtues. “What institutions of government could tend so much to promote the happiness of mankind as the general prevalence of wisdom and virtue? All... Read more →

Moral hazard occurs when a party protected from risk behaves differently than it would if it were fully exposed to the risk. It arises because an individual or organization does not take full responsibility for its actions so that the consequences of bad behavior do not befall on that party.... Read more →