Zeroing in on missing link in economic development ...Qatar

You don’t have to be a neuroscientist to understand that your brain determines what you see at least as much as the objects of perception do. This is even more the case in the social world, which generally reflects concepts – such as freedom, democracy, corruption, or poverty – that one already has in mind. But if you are an economist, your mind has been trained to see the world through the additional layer of incentives. Incentives are everywhere, and economics has developed a rich and subtle conceptual framework for understanding all the ways in which they might get distorted. We talk about moral hazard, adverse selection, common-pool problems, agency problems, externalities, rent-seeking

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