The expression incentive effect designates the influence, which political control attempts have on the national economy in the political economy. Untiring striving homo oeconomicus makes it particularly sensitive to incentives. Examples of such tools are: Value added tax, international trade agreements, restrictions of permission for foreign workers, unemployment insurance, interest policy, price monitoring, trust prohibitions, investment programs, subsidies, scholarships, banking secrecy.

Always an incentive does not align also the intended effect. Regulatori interferences can be accompanied by unwanted or counter productive Nebenfolgen (fee on as incentive for separating and less waste for producing waste can to an increase of savage dumps lead. Alkoholprohibition promotes illegal Brennereien, smuggling, transferred to spare drugs, black markets, gepanschte with death sequences and thus a general rise of the criminality). Political control attempts are thus always accompanied of uncertain Nebenfolgen.

Articles in category "Incentive effect"

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