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Failure to protect brands in poor countries may reduce incentives to innovate.
It is true that bringing US corporate rates in line with our trading partners may reduce incentives for improper transfer pricing.
Germany, the nation with the largest solar market, has already proposed a 15% reduction in subsidies for solar and said it may reduce incentives for panels installed on farmland.
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Indeed, applying the exclusionary rule to warrant searches may well reduce incentives for police to utilize the preferred warrant procedure when a warrantless search may be permissible under one of the established exceptions to the warrant requirement.
Internalizing the social costs of emissions, such as through an emissions tax, will deter emissions, but may also reduce incentives for firms to truthfully report their emissions.
It's not that authorities are unaware that mergers may reduce innovation incentives of competitors.
In other cases, though, the cost-efficiency of contracting out may reduce the incentives to automate.What sort of world will this on-demand model create?
Although there are reasons to believe that the AUH may reduce the incentives to participate in the labor market, in practice, these disincentives could be quantitatively irrelevant or be compensated by forces operating in other directions.
Similarly, salary top-ups such as under the Malawi Health SWAp, while attractive on one level, are unlikely to ever be of the magnitude needed to stem international departures from Malawi's public health system (although they may reduce the incentives for health personnel to move out of their profession, but remain in Malawi).
But the downside may be that they reduce incentives for foreign governments, nongovernmental organizations and educational institutions to invest in overseas exploration because their efforts will not necessarily be rewarded by opportunities to hold, display and study what is uncovered.
But, you may say, raising taxes would reduce incentives to work and create wealth.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com