Some corruption of employees will exist when managers are constrained in setting rewards and penalties. Attempts to reduce corruption need to address these constraints. Raising salaries without raising expected penalties will have higher costs than benefits

"There is a debate among policy analysts about whether fuel taxes alone are the most effective policy to reduce fuel use by motorists, or whether to also use mandatory standards for fuel efficiency. A problem with a policy mandating fuel economy standards is the "rebound effect," whereby owners...

Transfers and bailouts: enforcing local fiscal discipline with lessons from U.S. federalism / Robert P. Inman -- Constraining subnational fiscal behavior in Canada: different approaches, similar results? / Richard M. Bird and Almos Tassonyi -- Vertical imbalance and fiscal behavior in a welfare...