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These disincentive effects may be small.
After all, higher rates do have some disincentive effects.
Economists argue about the disincentive effects of higher tax rates.
They assert that it has few disincentive effects since it is payable only at death.
This idea that there are government-level disincentive effects has its roots in the persistence of food aid.
And the problems associated with disincentive effects are closely caught up with the targeting errors we talked about earlier.
Similar(27)
Third, however, we find evidence of statistically significant, and not inconsiderable, stigma/ transaction/ information costs which implies that in-work transfers are not as effective at countering the disincentive effect of out-of-work transfers, or at countering poverty amongst the working poor, as they might otherwise be.
So the idea is that when well-managed local and regional purchases can be a very effective tool not just for reducing these timing problems, not just for reducing the disincentive effects or better yet, creating incentives for agricultural production but also, as I'll explain in a moment, for reducing costs.
The other disincentive affect people are concerned about is the disincentive effect for recipient governments.
It does have a disincentive effect, though, and it's a price just not worth paying".
But they should worry about the potential for that disincentive effect.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com