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The payments would provide sharper incentives, as well as extra resources.
One is that sharper incentives and tighter controls are of little use if civil servants lack the necessary skills.
The government proposes tackling this problem through a mixture of harsher sanctions and sharper incentives to work.
It was only during the subsequent job-rich recovery that the effects of curbs on union power and sharper incentives to work materialised.
Now that the main funding for degrees flows via students, there are much sharper incentives on institutions to deliver an excellent student experience.
Underlining financial pressures on universities, Willetts says: "Now that the main funding for degrees flows via students there are sharper incentives to deliver an excellent student experience".
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Tax cuts would be a far sharper incentive to create jobs than the current system of welfare for big companies.
Today's 55- to 64-year-olds are the advance squad of the post-war baby-boomers who benefited from better education than their predecessors.Older workers now have a sharper incentive to stay in employment because of the impact of the crisis on wealth.
Key themes in optimal regulatory design include the merits of sharp incentives for pollution prevention using negligence-type rules; flexible regulation that allows interfirm trading of pollution rights; landowner rights regimes that elicit efficient location decisions in coming-to-the-nuisance situations; and potential environmental costs of extended (lender) liability for environmental harm.
Partners had a sharp incentive to control their traders because their own money was at risk in the markets.
In order to assess the impact of the recent NHS market-based reforms, we exploit the fact that the choice-based reforms will create sharper financial incentives for hospitals in markets where choice is geographically feasible.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com