I'm engaged in making a variation of the canonical moral hazard model, but I need some examples of probability distributions to make some simulations and graphs. What are the probability distributions often used? I know that normal and uniform distributions do not work properly in this model. What else can I use?

Thank you very much.

  • 1
    $\begingroup$ You want to use distributions that satisfy the monotone likelihood ratio property. Some examples are given here: w.wiki/4C2b $\endgroup$ Oct 8 at 19:42
  • $\begingroup$ Makes sense. Thank you! $\endgroup$
    – Iriki
    Oct 9 at 19:21

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