Moral hazard
When implementing donation-based admission, market failure can occur because of asymmetric information. Universities can spend money earned through donation in an inefficient way because it is difficult for the government and people to know how the university spends contribution and it is hard to monitor university’s behavior. It is called moral hazard. “Moral hazard is a spec
II. 본론
1. 콜버그 도덕성발달이론(Kohlberg's stages of moral development)
콜버그 도덕성발달이론(Kohlberg's stages of moral development)은 로렌스 콜버그(Lawrence Kohlberg)가 시카고 대학(University of Chicago)의 대학원생이었던 시절에 스위스 심리학자 장 피아제(Jean Piaget)의 심리이론을 확장해 도덕발달단계를 설명하는데
increase of interest rate put people
with housing loan unable to redeem their loan
US government prosecuted 1800 executives of bankrupted S&Ls
Government also enacted ‘Financial Institution Reform, Recovery and Enforcement Act’ to persecute moral hazard
Strong attitude of the administration convinced tax payers of spending public fund to settle the discordant market
The Nature of the Justification
The Nature of the Justification for a course of action
= To provide good reasons or grounds for that course of action
The Nature of the Justification
BEFORE
we proceed an argument
1. Worth reminding ourselves what it is we are making an argument for.
2. Need to be much more precise in what it is we are justifying.
The primary purpose of the
purchase
homes
S&L organizations grew rapidly,
as the generation of baby boomers
started purchasing houses
S&L banks asked Congress to remove restrictions of their business in order to expand their business : Deregulation
As the competition between S&L banks became severe, expanded business, they started to lend mortgage to the people with low credit rating