Paying Respect

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Paying Respect

W hy do people work? Economic theory generally, and the principal– agent model specifically, emphasize the role of material incentives. The standard assumption is that people work hard only if they receive monetary compensation for doing so. However, a substantial body of evidence contradicts the standard economic model. Many salaried academics, for example, work diligently year after year, con...

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Paying more when paying for others.

Social behavior is heavily influenced by the perception of the behaviors of others. We considered how perceptions (and misperceptions) of kindness can increase generosity in economic transactions. We investigated how these perceptions can alter behavior in a novel real-life situation that pitted kindness against selfishness. That situation, consumer elective pricing, is defined by an economic t...

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Paying taxes

Imagine a woman named Amina who owns a manufacturing company in Morocco. In 2004 she had to make 28 payments and spend more than 44 days (358 hours) to comply with tax regulations. Today, thanks to changes over the past 7 years, her administrative burden is lighter. The government merged many taxes and eliminated others, and now Amina needs to make only 17 payments a year as measured by Doing B...

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Paying Attention or Paying Too Much in Medicare Part D.

We study whether people became less likely to switch Medicare prescription drug plans (PDPs) due to more options and more time in Part D. Panel data for a random 20 percent sample of enrollees from 2006--2010 show that 50 percent were not in their original PDPs by 2010. Individuals switched PDPs in response to higher costs of their status quo plans, saving them money. Contrary to choice overloa...

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Paying People to Be Healthy

User Financial Incentives (UFIs) have emerged as a powerful tool for health promotion. Strong evidence suggests that large enough incentives paid to individuals, conditional on behaviour they can control, encourages more of the desired behaviour. However, such interventions can have unintended consequences for non-targeted behaviours. Implementation difficulties that result in individuals not u...

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ژورنال

عنوان ژورنال: Journal of Economic Perspectives

سال: 2007

ISSN: 0895-3309

DOI: 10.1257/jep.21.4.135