“How do incentives create Unintended Consequences?”
For the government, it is often common to assume that people will continue doing what they’re doing despite changes in the costs and benefits of their choices. Policymakers and policy advocates seem prone to the assumption that behavior is fixed. New rewards and punishments do not affect only the targeted activity. They can also affect the level of other, related activities. Punishing one “bad” thing can induce people to do more of other bad things; rewarding one “good” thing can induce people to do less of other good things. Governments and their cronies tend to assume the complexity of economic life, leading to the making of policies around monetary and other forms of incentives that have unintended consequences on the economy.
In this episode,
1: Emeka Ezeugo, President, Global African Christians for Liberty Initiative will highlight the role that governments play in creating incentives for producers and service providers that end up making such situations worse.
2: Specifically, what are the unintended consequences of incentives, and what is the way forward for policymakers inclined to offer incentives?
Course Features
- Lectures 0
- Quizzes 0
- Duration 50 hours
- Skill level All levels
- Language English
- Students 5
- Certificate No
- Assessments Yes
