Christian Gollier, Stephane Straub, 02 April 2020

Economists have long argued that there is a conflict between the need to make individuals and companies accountable on the one hand, and the need to share risks effectively on the other. This column, the first in a three-part series, argues that in the context of COVID-19, the reluctance to share risk based on ‘moral hazard’ has no reason to exist, and discusses how the socialisation of losses could be implemented.

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