Midlands State University Library

Moral Hazard in Leasing Contracts: evidence from the New York City Taxi Industry

Schneider, Henry

Moral Hazard in Leasing Contracts: evidence from the New York City Taxi Industry created by Henry Schneider - Journal of Law and Economics Volume 53, number 4 .

In this study, I investigate the effects of moral hazard in leasing contracts by examining the driving outcomes of all long-term lessees and owner-operators of New York City taxis. I find that moral hazard explains a sizable fraction of lessees’ accidents, driving violations, and vehicle inspection failures. To address the possibility of endogenous contract choice, I conduct an instrumental variables analysis of the cross section of all drivers and a panel-data analysis of a subset of drivers who switched from leasing to owning

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Accident rates--Automobile accidents--Accidents
Estimated taxes--Moral hazard--Leases
Taxi drivers--Vehicle operation--Traffic violations

HB73 JOU