Moral Hazard & Adverse Selection


Question Description:

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Moral Hazard & Adverse Selection 1 answer below » The file is attached. Document Preview: Although you have several days until it is due, you should not spend more than about 1 to 1.5 hours writing this exam. You may take longer to think about your answer, and you should write your answer in readable sentences, but long answers will not help. Submit as a Word document, with single spaced text and default margins, no longer than one page of text. Text beyond the first page will be ignored.
You do NOT need to do additional research or View complete question » The file is attached. Document Preview: Although you have several days until it is due, you should not spend more than about 1 to 1.5 hours writing this exam. You may take longer to think about your answer, and you should write your answer in readable sentences, but long answers will not help. Submit as a Word document, with single spaced text and default margins, no longer than one page of text. Text beyond the first page will be ignored.
You do NOT need to do additional research or calculations for this exam. You do NOT need to repeat the case problem or its details in your answer. You do NOT need to put graphs in your answer, although you may use them in thinking about your answer.
THE PROBLEM OF PUBLIC-SECTOR EMPLOYEE PERFORMANCE
It is generally recognized that one of the core problems of public-sector management is how to ensure the quality and productivity of the work done by public-sector employees. This problem has received recent attention with regard to:
Schoolteachers — Many researchers and politicians claim that the quality of a teacher is the most important factor in K-12 education. They recommend policies such as pay-for-performance based on student test score growth, and getting rid of teachers with low performance. However, some claim that these efforts are misdirected and are making teaching less attractive as a profession.
Police officers — Problems in this field include corruption, racism, excessive violence, and negligence or incompetence in investigating crimes. Some applicants with criminal records have been hired inappropriately, and it is getting harder to find qualified applicants because of the negativity surrounding the job.
Military leaders and personnel — Recent news reports reveal that high-ranking military leaders have engaged in corruption, failed to act against sexual harassment in the military, and neglected basic responsibilities for safety and security. Lower-ranking personnel have been accused of crimes on the battlefield or revealing secrets. Health impacts… Attachments: Problem-3.docx View less » Dec 06 2013 10:12 AM

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