Any other business

Published

Mervyn’s moral hazard

1 Mins

"My first memories of Leeds are from a wet summer in 1958. I was ten years old, we lived on the moors above Hebden Bridge, and my father took me to my first Test Match – England against New Zealand at Headingley. It rained all day on both Thursday andFriday, and, when play started in mid-afternoon on Saturday, on a drying wicket NewZealand were bowled out by Laker and Lock for 67. So I became a slow bowler. I wastaught to bowl – slow left arm – at Old Town primary school by the headmaster, Alfred Stephenson. During the morning break he would mark the wickets in chalk in theplayground, and draw a small circle exactly on a length. If we could pitch the ball withinthat circle he would give us a farthing. As we improved, and the payout of farthingsincreased, the morning break became shorter and shorter – my first lesson in economic incentives, or what is known in the trade as ‘moral hazard’."

Share this story

“Stop fussing over the gender pay gap,” says economist
Broadbean Technology acquired by Daily Mail Group
Send this to a friend