The results suggest that first pillar crop subsidies and pillar two environmental programs generate a disincentive effect on productivity, whilst in general, the CAP promotes technical efficiency convergence within Europe.
And people who are well fed and fall ill less often therefore work more, so there's a countervailing positive effect on labor supply that offsets whatever negative effect might be induced by creating a disincentive effect, by encouraging people to take time off work because they know they're getting income.
If the rich are going to continue to get richer in low-tax countries and high-tax countries alike, then it must mean that high tax rates have far less of a disincentive effect on the rich than conservatives like Professor Meltzer continually proclaim.
Since the late 1980s, these policies have been reversed and there should no longer be any disincentive effect on agriculture.
We hope the debate will be resolved not by the semantics of the words "idea" and "expression" but by the economics of the problem and, specifically, by comparing the deadweight costs of allowing a firm to appropriate what has become an industry standard with the disincentive effects on originators if such appropriation is forbidden.
The standard design of these income support mechanisms is however augmented with a premium for two-earner households to avoid potential disincentive effects on secondary earners.
If, on the other hand, the disincentive effects of UI are smaller in a recession, the need for activation as a tool to combat moral hazard problems may also be less acute.
Job search may be less distorted in a slump, and this implies that the role of ALMP in countering disincentive effects from e.g. unemployment insurance is less strong.
