IDEAS home Printed from
   My bibliography  Save this article

Innovation and Adaptation under Incentive Anti-inflation Plans


  • Koford, Kenneth


This paper examines the effects of incentive anti-inflation plans upon a firm's incentives to innovate and to adapt to shocks. Such plans create a uniform tax upon price increases and subsidy for price decreases. The incentive plans' effects upon innovation dependupon the rule. One rule increases firms' incentives to develop cost-reducing innovations, but generally reduces firms' incentives to develop demand-increasing innovations and speed of adjustment to demand and input price shocks. Another rule reduces the profits from highly successful innovations, but increases the profits from less successful innovations, with uncertain overall effect on the incentive to innovate.

Suggested Citation

  • Koford, Kenneth, 1986. "Innovation and Adaptation under Incentive Anti-inflation Plans," Public Finance = Finances publiques, , vol. 41(2), pages 218-231.
  • Handle: RePEc:pfi:pubfin:v:41:y:1986:i:2:p:218-31

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pfi:pubfin:v:41:y:1986:i:2:p:218-31. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.