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The term National Economic Planning is associated with government's effort to coordinate the working of both the public sector and the private sector through a structured mechanism. Although, during the 20th century, the term was more associated with the communist and eastern economies, through the 1970s, theorists and practitioners documented ...
In game theory and economics, a mechanism is called incentive-compatible (IC) [1]: 415 if every participant can achieve their own best outcome by reporting their true preferences. [ 1 ] : 225 [ 2 ] For example, there is incentive compatibility if high-risk clients are better off in identifying themselves as high-risk to insurance firms , who ...
The price mechanism, part of a market system, functions in various ways to match up buyers and sellers: as an incentive, a signal, and a rationing system for resources. The price mechanism is an economic model where price plays a key role in directing the activities of producers, consumers, and resource suppliers. An example of a price ...
Compellence is a form of coercion that attempts to get an actor (such as a state) to change its behavior through threats to use force or the actual use of limited force. [1] [2] [3] Compellence can be more clearly described as "a political-diplomatic strategy that aims to influence an adversary's will or incentive structure.
Incentives are most studied in the area of personnel economics where economic analysts, such as those who take part in human resources management practices, focus on how firms make employees more motivated, through pay and career concerns, compensation and performance evaluation, to motivate employees and best achieve the firms' desired ...
An economic development incentive is known as "cash or near-cash assistance provided on a discretionary basis to attract or retain business operations." [ 1 ] These benefits principally encompass tax and economic incentives provided by federal , state , or local governmental bodies.
So in this situation, simultaneous investment in a large number of sectors is a well-suited policy. The various economic agents are temporarily unemployed and once the inducement to invest starts operating, the slump will be overcome. However, for an underdeveloped economy, where such resources are absent, this principle doesn't fit. [7]
Performance-based regulation (PBR) is an approach to utility regulation designed to strengthen utility performance incentives. Thus defined, the term PBR is synonymous with incentive regulation. The two most common forms of PBR are award-penalty mechanisms (“APMs”) and multiyear rate plans (“MRPs”).