IDEAS home Printed from https://ideas.repec.org/a/bla/ajarec/v62y2018i4p676-707.html
   My bibliography  Save this article

The behavioural economics of health protection: an empirical evidence of moral hazard in U.S. hog farms

Author

Listed:
  • Li Yu
  • Xundong Yin
  • Yulong Chen

Abstract

Healthy workers are productive. When firms could not pay according to worker's health preventative effort levels due to asymmetric information, they provide an incentive contract to cope with the moral hazard problem. We test the existence of ex ante moral hazard in the U.S. hog farms. Using a national employee survey data in 1995 and in 2000, we find that even though employers provide protective devices to reduce the negative effects of poor environmental conditions on employees’ respiratory health, many employees do not wear the devices, which is consistent with the moral hazard behaviours. The probability of using a protective device is 10 per cent lower in the farms with an agency problem than in family farms without an agency problem, even after we control for medical insurance provision types. Reducing pollutants, providing protective devices and instilling the importance of using masks help to alleviate moral hazard incidences.

Suggested Citation

  • Li Yu & Xundong Yin & Yulong Chen, 2018. "The behavioural economics of health protection: an empirical evidence of moral hazard in U.S. hog farms," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(4), pages 676-707, October.
    • Handle: RePEc:bla:ajarec:v:62:y:2018:i:4:p:676-707
    DOI: 10.1111/1467-8489.12277
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-8489.12277
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-8489.12277?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Haorui Wu & Meredith Greig & Catherine Bryan, 2022. "Promoting Environmental Justice and Sustainability in Social Work Practice in Rural Community: A Systematic Review," Social Sciences, MDPI, vol. 11(8), pages 1-22, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ajarec:v:62:y:2018:i:4:p:676-707. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.