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EoE: 6.4.A - Incentives Matter

According to Prof. Angela Dills, incentives are important and help economists predict individual behavior. Recognizing that incentives matter is fairly straightforward. What’s difficult is determining all the different ways a policy might affect people’s incentives and change people’s behavior. A good economist looks not only at the obvious incentives created by a particular policy but also looks for the less obvious effects. This video is included as part of a 40-lesson course on the Economics of Entrepreneurship available now for teachers and students at no charge at FEE.org/Courses.

from Do Incentives Matter for the Economy (2016)
Creator: Learn Liberty
Posted by Foundation for Economic Education
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