HINT: INCENTIVES MATTER

By Betsy Newmark  •  August 20, 2005 12:13 PM

One of the basic rules of economics that my husband, an economics professor, has managed to drill into my untutored mind is that people respond to incentives.

Andrew Roth has an example of how even millionaires respond to incentives as he looks at famous golfers who are leaving California because of the high taxes there.

California can keep going down that road and other states like Nevada, Texas, and Florida will reap the benefits.

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