Oak processionary Oak processionary The oak processionary "(Thaumetopoea processionea)" is a moth whose caterpillars can be found in oak forests. They are a human irritant because of their venomous setae (hairs), which can cause skin irritation and asthma. The moths are widely distributed in central and southern Europe, and are occasionally found as far north as Sweden. In the southern countries of Europe the populations are controlled by natural predators, but these predators do not exist in northern Europe. Their range is expanding northward, possibly or partly as a result of global warming. The moth now has an established population in the
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