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externalities in the form of inter-regional capital tax competition and technical externalities in the form of inter … and technical externalities but free-ride on the transfer system. Efficiency can be achieved by introducing a second …
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To provide efficient incentives, the three components of an incentive system (i.e., performance measurement, rewards, and the allocation of decision rights) need to be balanced against each other. In practice, the authority to decide on these components is frequently distributed across...
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