Incentives
in sentence
1725 examples of Incentives in a sentence
Because such a compensation structure would expose executives to a broader share of the negative consequences of risks taken, it would reduce their
incentives
to take excessive risks.
Nevertheless, while such a compensation structure would lead executives to internalize the interests of preferred shareholders and bondholders, thereby improving incentives, it would be insufficient to induce executives to internalize fully the interests of the government as the guarantor of deposits.
Motivating financial executives to focus on the effects of their choices on all those contributing capital to the bank would significantly improve their risk-taking
incentives.
But if the world is serious about achieving these shared goals, an effective mechanism for financing them must be established, supported by well-designed regulations that create the right
incentives.
Instead, Trump’s campaign called for a “deficit-neutral system of infrastructure tax credits” to provide
incentives
for private businesses to undertake projects to build roads, bridges, tunnels, airports, and so forth.
Ronald Reagan’s famous Tax Reform Act of 1986 was a supply-side policy designed to improve incentives, rather than a traditional demand-side policy designed to put more cash in people’s pockets.
If individuals had not responded to the changed incentives, the Reagan tax cut would have been revenue-neutral.
But, because taxpayers did respond to the improved incentives, real pre-tax incomes rose and tax collection actually increased.
Indeed, Latin American terrorism is sometimes exaggerated, because governments have
incentives
to cite local terrorist threats to secure foreign support, such as US capacity-building funding.
Extra-regional terrorists certainly have
incentives
to penetrate the region.
On the other hand, the
incentives
for success are not great; the years of sacrifice and effort it takes to become a world-class athlete are simply not a realistic option to an Indian who needs to make a living, and sponsors are few and far between (and they are all spending their sponsorship money on cricket).
In particular, giving people monetary
incentives
may work in market-like situations.
The state performs best when it delineates, protects, and adjudicates property rights, while the market works best when it allocates property rights and aligns people’s
incentives.
Cutting them would not only remove perverse incentives; it would also free up money for education, universal health care, and infrastructure in rural areas, where it is needed to create income opportunities.
There is a better way to prevent the proliferation of nuclear and other weapons of mass destruction in the region: a “WMD-free zone,” built on a system of
incentives
that include economic and technical support for countries that join, as well as security guarantees from the United Nations Security Council’s permanent members.
Governments will have to design smarter financial
incentives.
Because insolvent banks were kept alive through government bailouts and guarantees, Japan provided the wrong
incentives
to its financial institutions.
For example, harmonizing insolvency regimes across the continent and reducing tax
incentives
that favor debt over equity, while entirely logical, strike at the heart of member states' remaining sovereignty, and thus will be extremely difficult to push forward.
Negative interest rates hurt banks’ balance sheets, with the “wealth effect” on banks overwhelming the small increase in
incentives
to lend.
Fast-forward 150 years to post-World War II America, and to the original Chicago School critique of the New Deal version of social insurance – that it created “notches” that perverted economic
incentives.
The big difference between the Malthusian conservative critics of social insurance in the early nineteenth century and the Chicago critics of the 1970’s is that the Chicago critics had a point: Providing public support to the “worthy” poor, and then removing it when they began to stand on their own feet, poisoned
incentives
and was unlikely to lead to good outcomes.
But mass communications and market forces produce powerful
incentives
to master the English language and accept a degree of assimilation.
To accelerate the move toward a low-carbon economy, an international agreement must be applicable to all countries; include a common and consistent system for monitoring, reporting, and verification; and provide strong economic
incentives
at a global scale.
Every citizen in the world would have the same right to emit greenhouse gas, and every country would face the same
incentives
at the margin to reduce emissions.
Emerging-market policymakers hope that
incentives
like tax breaks and free land will induce innovators to settle and prosper there.
Coupling intermediate technical milestones with guaranteed
incentives
enables companies to focus on problems that might take ten years or more to solve.
As with the microelectronics program, government
incentives
don’t have to line the road all the way to commercial success.
There is a growing recognition of the importance of institutions – particularly legal frameworks and public agencies that administer rules and
incentives
– in the development process.
Developing domestic institutions and appropriate
incentives
in a broad range of other areas that are relevant for social inclusion will be vital to improving living standards, while reinforcing the growth process itself.
There is no single ideal institutional mix for inclusive growth, but all countries should begin to think more systematically about strengthening their institutions and creating
incentives
to promote inclusive growth.
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