TY  - BOOK
AU  - Aizenman,Joshua
AU  - Isard,Peter
ED  - National Bureau of Economic Research.
TI  - Externalities, Incentives, and Economic Reforms
T2  - NBER working paper series
PY  - 1990///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - June 1990; Hardcopy version available to institutional subscribers
N2  - The paper emphasizes the role of institutions and incentives in the presence of externalities. An economy with multiple public decision makers is likely to experience "overspending," "undertaxing," "overborrowing," and "overinflation" unless effective institutions exist for overcoming coordination failure. External financing may weaken incentives for adjustment over the longer run unless assistance is made conditional on fundamental institutional reforms. The paper also analyses reforms that strengthen incentives to provide effort. Uncertainty regarding future taxes reduces present effort and the responsiveness of output to market signals. In addition, the paper addresses the adverse effects of bank insurance and soft budget constraints
UR  - https://www.nber.org/papers/w3395
UR  - http://dx.doi.org/10.3386/w3395
ER  -