@techreport{NBERw3316,
 title = "The Welfare Economics of Moral Hazard",
 author = "Richard Arnott and Joseph Stiglitz",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "3316",
 year = "1991",
 month = "April",
 URL = "http://www.nber.org/papers/w3316",
 abstract = {This paper shows that, except in certain limiting cases, competitive equilibrium with moral hazard is constrained inefficient. The first section compares the competitive equilibrium and the constrained social optimum in a fairly general model, and identifies types of market failure. Each of the subsequent sections focuses on a particular market failure.},
}