Incentives
in sentence
1725 examples of Incentives in a sentence
It is not a good idea to assume that markets will solve these distributional problems by themselves; the evolution of structure and the income distribution are largely the result of market
incentives.
Public policies have a role to play not only in providing a cushion for workers in transition, via income support, but also in creating
incentives
and opportunities for skills acquisition.
Governments should also reinforce the supply of skills by strengthening
incentives
for educational institutions to harness the power of digital technology and new business models.
By distorting
incentives
through taxes, regulations, and a runaway welfare state, both countries discouraged growth in their most productive sectors.
Yes, but it must formulate new policies to create
incentives
for work and education and to facilitate the growth of small and medium-sized enterprises.
Today there is lively debate on institutions and
incentives
among economists and politicians, and several reforms, including a new tax system, have been introduced over the past few years.
As the former diplomat Thomas Christensen points out in his recent book The China Challenge, China “has major
incentives
to avoid unnecessary conflict.”
And the problem isn’t limited to such financial products: with issuers of other debt securities choosing and compensating the firms that rate them, the agencies still have strong
incentives
to reciprocate with good ratings.
On this view, if investors were able to take raters to court, raters’
incentives
would improve.
There is thus no substitute for providing raters with
incentives
to provide as accurate a rating as they can.
If raters’ profits depend on such performance – on the accuracy of their ratings – the profit motive would turn from a source of perverse
incentives
to a provider of beneficial
incentives.
Well, such a mechanism would indeed reduce raters’ negative
incentives
to compete with one another to please issuers of securities, and to pursue innovations and improvements that enable raters to serve issuers better.
But it would strengthen raters’ positive
incentives
to compete with one another to produce accurate ratings, and to pursue innovations and improvements that enable raters to achieve that far more socially beneficial goal.
But establishing them would be a bad idea, because to do so would imply that government subsidization of banks, thereby creating
incentives
for imprudent behavior in the long run.
It helps banks immediately, and it creates the right
incentives
for future behavior, as banks will know that the government will not prevent private equity capital from being destroyed in a crisis.
The problem is
incentives
– what bailouts imply for attitudes and behavior within the financial sector.
Top US policymakers acknowledge that this structure of
incentives
is a problem – interestingly, many of their European counterparts are not yet willing even to discuss these issues openly.
If Saudi Arabia succeeds in transforming its economy, including reforming institutions and restructuring economic incentives, other countries that face similar challenges, in the region and beyond, will be inspired to follow suit.
By contrast, as Henry Kissinger has argued, the victors in World War I could neither deter a defeated Germany nor provide it with
incentives
to accept the Versailles Treaty.
Many other policies and procedures can be enacted that reduce
incentives
for corruption.
Raising interest rates on bank deposits, which are now negative in real terms, would reduce
incentives
for individuals to pour money into equity markets or real estate, mitigating the risk of asset market bubbles and boom-bust cycles in the economy.
A focus on national (and in some places, like Catalonia and Scotland, regional) issues is gaining ground, in line with the
incentives
of policymakers, whose constituencies are national (or regional).
And, yes, tax
incentives
are not the only – and perhaps not even the most important – reason why financial institutions use a lot of debt and minimize equity.
But there remain significant barriers to adoption – barriers that governments should dismantle through a combination of incentives, regulatory reform, and institutional upgrading.
In the absence of supporting regional institutions, there is little else to ensure that the desire for peace and prosperity prevails over conditions and
incentives
that tend toward conflict and war.
We need to communicate our positions clearly to policymakers and reinforce
incentives
for countries to take appropriate corrective actions.
Public sector firms have
incentives
to lobby for subsidies, protection and cheap credit.
As a result, while many advanced and developing countries are pursuing far-reaching measures to increase energy efficiency and adopt clean-energy technologies, their existing technologies, incentives, regulations, and commitments imply a sharp rise in total carbon emissions in the coming decades.
Given the structure of the problem – sequential decision-making with uncertainty about all the relevant parameters (including costs, the efficient pattern of mitigation, and technology) – it would be wiser to adopt a more flexible strategy that provides
incentives
and regulations to achieve measurable intermediate progress, while generating a lot of useful information along the way.
As these are still unknown today, the initial challenge will be to jump-start the mitigation and learning processes, and create powerful
incentives
for technology that will increase energy efficiency and reduce CO2 emissions in the long run.
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