MORAL HAZARD PROBLEM AND COOPERATION WILLINGNESS: SOME EXPERIENCES FROM HUNGARY

The paper examines the effect of moral hazard on the machinery sharing cooperation arrangements of Hungarian fieldcrop farms. The results of the empirical research confirm that the moral hazard is present - although not significant - in the relations between farmers. Statistical examinations prove that moral hazard has negative impact on cooperation activity. This impact can be divided into two parts: direct and indirect impact, which means that moral hazard, can reduce cooperation willingness of farmers by the destruction of trust. Our results also demonstrate that low cooperation activity we can see these days can be partly explained by moral hazard within the surveyed group of farmers.