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The underexamined assumptions of the invisible hand: Monetary incentives as policy instruments

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  • Thomas W. Church
  • Milton Heumann

Abstract

To alleviate overcrowding in pretrial detention facilities, the City of New York established a program offering substantial budgetary increments to those district attorneys' offices in the city that reduced the number of long-term detainee cases. The experience with this program suggests that the inherent assuptions underlying a monetary incentive strategy-the existence of capacity, the avoidability of goal displacement, and the efficacy of financial rewards-need to be carefully examined if implementation is to be successful.

Suggested Citation

  • Thomas W. Church & Milton Heumann, 1989. "The underexamined assumptions of the invisible hand: Monetary incentives as policy instruments," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 8(4), pages 641-657.
    • Handle: RePEc:wly:jpamgt:v:8:y:1989:i:4:p:641-657
    DOI: 10.2307/3325050
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    Cited by:

    1. Robert W. Hartman & David Hemenway, 1995. "Financial incentives for childhood immunization," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 14(1), pages 133-139.
    2. Frederico Finan & Benjamin A. Olken & Rohini Pande, 2015. "The Personnel Economics of the State," NBER Working Papers 21825, National Bureau of Economic Research, Inc.
    3. John J. Dilulio, 1994. "Speedy disposition: Monetary incentives and policy reform in criminal courts, by Thomas W. Church and Milton Heumann. Albany, NY: State University of New York Press, 1992, 169 pp. Price $44.50 cloth, ," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 13(1), pages 202-205.

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