Are economic incentives necessary to get the private sector to do the right thing? Cities and states offer corporations tax breaks to locate in impoverished areas. Companies get tax breaks to beef up their research and development portfolios. In health care, some physicians get extra pay if they adhere to clinical practice guidelines under the presumption that it will lead to better patient outcomes.
But these thinly-veiled bribery strategies often come with unintended consequences. The companies that get the tax breaks...
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