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But it is disfigured by inappropriate incentives.
"Excessive executive compensation that provides inappropriate incentives," Mr. Geithner said, "has played a role in exacerbating the financial crisis".
These can be "inappropriate incentives" according to the panel's head, Richard A. Luettich Jr., a professor of marine sciences at the University of North Carolina, Chapel Hill.
As a corollary to the lesson that controls may strongly divert economic activity from an efficient allocation of resources, it became increasingly evident that inappropriate incentives can adversely affect economic behaviour.
At issue is whether Bristol-Myers gave inappropriate incentives to wholesalers to take stock in order to enable it to meet its 2001 sales targets.Elan, another pharmaceutical company, is now also facing irate investors and with more justification.
There are also risks of unintended consequences if some diagnoses or detention status attract a higher payment, generating inappropriate incentives.
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Low health worker satisfaction, inappropriate incentive structures, and fear of facility bankruptcy have led to health worker resistance to provide friendly, comprehensive, and high-quality care to CBI enrollees [ 23, 25].
54 The no-limit piecework approach creates an inappropriate incentive for farmers to preserve clumps of gao seedlings rather than selecting the strongest plant in a bunch and pruning back all the others.
Inappropriate financial incentives, neglect of human factors, and the lack of a systematic approach to the science of health care delivery still pose major obstacles to better hospital care.
While coercion or inappropriate inducement is considered a violation of consent, financial incentives in developed country settings are a common practice [ 21].
All respondents mentioned that the current fee-for-service payment system provides inappropriate or contradicting incentives when it comes to integrated stroke care.
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