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Incentives : Motivation and the Economics of Information
When incentives work well, individuals prosper. When incentives are poor, the pursuit of self-interest is self-defeating.This book is wholly devoted to the topical subject of incentives from individual, collective, and institutional standpoints.This third edition is fully updated and expanded, including a new section on the 2007–08 financial crisis and a new chapter on networks as well as specific applications of school placement for students, search engine ad auctions, pollution permits, and more.Using worked examples and lucid general theory in its analysis, and seasoned with references to current and past events, Incentives: Motivation and the Economics of Information examines: the performance of agents hired to carry out specific tasks, from taxi drivers to CEOs; the performance of institutions, from voting schemes to medical panels deciding who gets kidney transplants; a wide range of market transactions, from auctions to labor markets to the entire economy.Suitable for advanced undergraduate and graduate students studying incentives as part of courses in microeconomics, economic theory, managerial economics, political economy, and related areas of social science.
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Rethinking Investment Incentives : Trends and Policy Options
Governments often use direct subsidies or tax credits to encourage investment and promote economic growth and other development objectives.Properly designed and implemented, these incentives can advance a wide range of policy objectives (increasing employment, promoting sustainability, and reducing inequality).Yet since design and implementation are complicated, incentives have been associated with rent-seeking and wasteful public spending. This collection illustrates the different types and uses of these initiatives worldwide and examines the institutional steps that extend their value.By combining economic analysis with development impacts, regulatory issues, and policy options, these essays show not only how to increase the mobility of capital so that cities, states, nations, and regions can better attract, direct, and retain investments but also how to craft policy and compromise to ensure incentives endure.
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Using Economic Incentives to Regulate Toxic Substances
Using case studies, the authors evaluate the potential attractiveness of incentive-based policies for the regulation of four specific toxic substances: chlorinated solvents, formaldehyde, cadmium, and brominated flame retardants. Originally published in 1992, the authors provide a compelling demonstration of the role of case studies in determining the appropriate regulatory approach for the specific toxic substances.This is a valuable title for students concerned with environmental issues and policy making.
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The Theory of Incentives : The Principal-Agent Model
Economics has much to do with incentives--not least, incentives to work hard, to produce quality products, to study, to invest, and to save.Although Adam Smith amply confirmed this more than two hundred years ago in his analysis of sharecropping contracts, only in recent decades has a theory begun to emerge to place the topic at the heart of economic thinking.In this book, Jean-Jacques Laffont and David Martimort present the most thorough yet accessible introduction to incentives theory to date.Central to this theory is a simple question as pivotal to modern-day management as it is to economics research: What makes people act in a particular way in an economic or business situation?In seeking an answer, the authors provide the methodological tools to design institutions that can ensure good incentives for economic agents.This book focuses on the principal-agent model, the "simple" situation where a principal, or company, delegates a task to a single agent through a contract--the essence of management and contract theory.How does the owner or manager of a firm align the objectives of its various members to maximize profits?Following a brief historical overview showing how the problem of incentives has come to the fore in the past two centuries, the authors devote the bulk of their work to exploring principal-agent models and various extensions thereof in light of three types of information problems: adverse selection, moral hazard, and non-verifiability.Offering an unprecedented look at a subject vital to industrial organization, labor economics, and behavioral economics, this book is set to become the definitive resource for students, researchers, and others who might find themselves pondering what contracts, and the incentives they embody, are really all about.
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What are incentives?
Incentives are rewards or benefits that are offered to encourage certain behaviors or actions. They can be financial, such as bonuses or discounts, or non-financial, such as recognition or extra time off. Incentives are used to motivate individuals or groups to achieve specific goals, increase productivity, or change their behavior in a desired way. They are commonly used in business, government, and other organizations to influence decision-making and drive desired outcomes.
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Do employers need tax incentives?
Employers may benefit from tax incentives as they can help reduce their tax burden and encourage certain behaviors, such as hiring new employees, investing in new equipment, or expanding their business. Tax incentives can also help businesses remain competitive and stimulate economic growth. However, the effectiveness of tax incentives in achieving these goals can vary, and they may not always be the most efficient way to achieve desired outcomes. Therefore, while tax incentives can be helpful for employers, they should be carefully designed and evaluated to ensure they are achieving their intended purpose.
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What are social, economic, and moral incentives?
Social incentives are rewards or punishments that come from interactions with others, such as approval or disapproval from peers. Economic incentives are rewards or punishments that come from financial gains or losses, such as receiving a bonus for meeting a sales target. Moral incentives are rewards or punishments that come from adhering to or violating ethical principles, such as feeling guilt for cheating or pride for helping others. These incentives can influence behavior and decision-making in various aspects of life.
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How does advertising stimulate incentives for needs?
Advertising stimulates incentives for needs by creating a sense of desire or urgency for a particular product or service. Through persuasive messaging and imagery, advertising can make consumers feel that they need a certain product to improve their lives or fulfill a specific need. This can lead to increased motivation to purchase the advertised product, thus stimulating incentives for needs. Additionally, advertising can also highlight the benefits and features of a product, further enticing consumers to fulfill their needs by making a purchase.
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Electoral System Incentives for Interparty and Intraparty Politics
Electoral systems are sets of formal rules that create incentives for strategic behavior on the part of voters, (pre-) candidates, party elites, and elected representatives, including legislators and their chamber leaders.Most simply, they translate the choices made by voters into seats won by candidates and parties.In the process, rules influence both how many and which parties are viable and how elected official will go about their time in office as representatives.All electoral systems share a common set of component rules and each rule can take on a number of different values.When combining the values taken by these rules into a system, the number of possible combinations is quite large, which means that specific systems have the potential to provide precise, targeted incentives that govern relationships between political parties - interparty politics - and within parties - intraparty politics.Using novel computational tools and a comprehensive and updated dataset on electoral systems, this book develops precise and transparent measures of both electoral systems' interparty and intraparty incentives.These two simple quantities capture the extent to which a given system encourages the election of a limited number of large parties or a larger number of relatively smaller ones and the extent to which the lawmaking process will be conducted by unified, programmatic parties or by individually noteworthy politicians.They thus allow scholars to test the extent to which electoral rules shape political outcomes about which we care, and they allow practitioners to select the electoral system that is likely to encourage the form of representation they desire.The book shows that these indicators of electoral system incentives can explain variation in interparty politics - the effective number of parties, parties' locations in the policy space, congruence between citizens' preferences and policy - and intraparty politics - the content of campaigns, the amount of constituency service provided, the shape of legislative institutions, levels of party discipline, and the balance struck between programmatic policy and pork barrel politics. Comparative Politics is a series for researchers, teachers, and students of political science that deals with contemporary government and politics.Global in scope, books in the series are characterized by a stress on comparative analysis and strong methodological rigour.The series is published in association with the European Consortium for Political Research.For more information visit: www.ecprnet.eu . The series is edited by Nicole Bolleyer, Chair of Comparative Political Science, Geschwister Scholl Institut, LMU Munich and Jonathan Slapin, Professor of Political Institutions and European Politics, Department of Political Science, University of Zurich.
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Catastrophic Incentives : Why Our Approaches to Disasters Keep Falling Short
Silver Award Winner, 2024 Nonfiction Book AwardsSocieties are vulnerable to any number of potential disasters: earthquakes, hurricanes, infectious diseases, terrorist attacks, and many others.Even though the dangers are often clear, there is a persistent pattern of inadequate preparation and a failure to learn from experience.Before disasters, institutions pay insufficient attention to risk; in the aftermath, even when the lack of preparation led to a flawed response, the focus shifts to patching holes instead of addressing the underlying problems. Examining twenty years of disasters from 9/11 to COVID-19, Jeff Schlegelmilch and Ellen Carlin show how flawed incentive structures make the world more vulnerable when catastrophe strikes.They explore how governments, the private sector, nonprofits, and academia behave before, during, and after crises, arguing that standard operational and business models have produced dysfunction.Catastrophic Incentives reveals troubling patterns about what does and does not matter to the institutions that are responsible for dealing with disasters.The short-termism of electoral politics and corporate decision making, the funding structure of nonprofits, and the institutional dynamics shaping academic research have all contributed to a failure to build resilience. Offering a comprehensive and incisive look at disaster governance, Catastrophic Incentives provides timely recommendations for reimagining systems and institutions so that they are better equipped to manage twenty-first-century threats.
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Economic Incentives in Sub-Saharan African Urban Planning : A Ghanaian Case Study
This book explores incentives capable of enhancing the effectiveness of urban planning systems in Sub-Saharan Africa using economic theory as a framework.It argues that urban planning is fundamental to the achievement of sustainable and resilient cities, but against the backdrop of rising levels of urbanisation and growth, poverty, informal development, and climate change, such systems are failing to be promoted and successfully maintained in the region.Across ten chapters, it analyses the connection between urban planning and socio-economic development, indicators of effective urban planning systems, and the role and influence of incentives with real-world evidence.It develops quantitative models to estimate the costs and benefits of urban planning systems, focussing on the developing world where organised data is less accessible.Using Ghana as a case study, it demonstrates a step-by-step approach on how to implement the quantitative models discussed.Economic Incentives in Sub-Saharan African Urban Planning will be useful reading for researchers, policy-makers, development agencies, and students in urban planning, sustainable development, and economics.
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European Civil Society and International Development Aid : Organisational Incentives and NGO Advocacy
This book explains how and why European non-governmental development organisations (NGDOs) engage in advocacy towards the European Union (EU). It analyses the heterogenous structure of the sector, with examples ranging from large multinational networks to essentially single person NGDOs.The book provides a detailed map of the topics which have featured in NGDO advocacy since 2006, arguing that NGDOs have generally been reactive in their advocacy towards the EU.The author explains how they have contested a number of policy issues on the agendas of the EU institutions, especially around the diversion of aid to manage migration and leverage private sector investments.Furthermore, some NGDOs have used the COVID-19 pandemic as an opportunity to re-package their pre-existing policy demands.Based on an analytical framework focused around three variables, namely moral vision, funding concerns, and the need to build/maintain a ‘good’ reputation, the book explains these advocacy choices, and argues that much of NGDO advocacy seems to be consistent with funding motivations.The author highlights the importance of moral vision and reputational concerns in moderating how far NGDOs will go with funding-driven advocacy, arguing that motivations need to be looked at in their complexity, and within the specific policy context. Drawing on a range of quantitative and qualitative data sets to provide a rich and varied picture of the advocacy work of European development NGOs, European Civil Society and International Development Aid is a key reference for researchers and practitioners working in the field.
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What are the motivational incentives to read more?
Motivational incentives to read more include the opportunity to gain knowledge and expand one's understanding of the world, the chance to escape into different worlds and experiences through literature, and the ability to improve one's vocabulary and critical thinking skills. Reading can also provide a sense of accomplishment and personal growth, as well as the opportunity to connect with others through shared stories and ideas. Additionally, the potential for relaxation and stress reduction can also serve as a motivational incentive to read more.
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What incentives are there to emigrate to Japan?
There are several incentives to emigrate to Japan, including the country's strong economy, high standard of living, and low crime rate. Japan also offers excellent healthcare and education systems, as well as a rich cultural heritage and unique experiences for those interested in living abroad. Additionally, Japan has a high demand for skilled workers in various industries, which can provide opportunities for career advancement and professional growth.
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What positive incentives can be given to employees for further education and training?
Some positive incentives that can be given to employees for further education and training include tuition reimbursement or assistance, flexible work schedules to accommodate classes, opportunities for career advancement or promotions upon completion of training, and recognition or rewards for achieving new certifications or skills. Additionally, offering mentorship or coaching programs to support employees in their educational pursuits can also be a valuable incentive. These incentives not only encourage employees to continue their education and training, but also demonstrate the organization's commitment to their professional development and growth.
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Should whistleblowers from companies receive financial incentives from the government to expose more misconduct to the public?
Whistleblowers play a crucial role in uncovering corporate misconduct and promoting transparency. Offering financial incentives from the government can encourage more individuals to come forward with valuable information that can protect consumers and investors. However, there should be a balance to ensure that the incentives do not lead to false or frivolous claims. Overall, providing financial incentives to whistleblowers can be an effective way to hold companies accountable and prevent unethical behavior.
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