Pine processionary development, pine processionary caterpillars are highly irritating to the skin. Contact with the hairs of the caterpillar can cause severe rashes (urticaria) and eye irritation. Some individuals may have an allergic reaction to the caterpillar's hairs. 5th stage larvae can eject hairs when threatened or stressed; the hairs, which have the form of harpoons, then penetrate and irritate all areas of exposed skin nearby with an urticating protein. Allergic reactions may follow in susceptible individuals on subsequent exposure to the hairs. The pine processionary is an economic pest in coniferous forests in southern Europe. It is controlled to some extent
Moral hazard it were fully exposed to the risk. According to contract theory, moral hazard results from a situation in which a "hidden action" occurs. Bengt Holmström said this: Moral hazard can be divided into two types when it involves asymmetric information (or lack of verifiability) of the outcome of a random event. An "ex-ante" moral hazard is a change in behavior prior to the outcome of the random event, whereas "ex-post" involves behavior after the outcome. For example, in the case of a health insurance company insuring an individual during a specific time-period, the final health of the individual can be