Please use this identifier to cite or link to this item: http://hdl.handle.net/1822/7880

TitleDoes monetary punishment crowd out pro-social motivation? the case of hospital bed-blocking
Author(s)Holmås, Tor Helge
Kjerstad, Egil
Lurås, Hilde
Straume, Odd Rune
KeywordsMotivation crowding
Intrinsic motivation
Monetary punishment
Hospital bed blocking
Issue date2008
PublisherUniversidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
CitationNIPE Working Paper series; 17
Abstract(s)We study whether the use of explicit monetary incentives might be counter-productive. In particular, we focus on the effect of fining owners of long-term care institutions who prolong length of stay at hospitals. We outline a simple theoretical model, based on motivational crowding theory, deriving the conditions for explicit monetary incentives to have potentially counterproductive effects. In the empirical part, we exploit a natural experiment involving changes in the catchments areas of two large Norwegian hospitals. We find that bed-blocking is reduced when transferring long-term care providers from a hospital using monetary fines to prevent bed-blocking to a hospital not relying on this incentive scheme, and vice versa. We interpret these results as examples of monetary incentives crowding out agents’ intrinsic motivation, leading to a reduction in effort.
TypeWorking paper
URIhttp://hdl.handle.net/1822/7880
AccessOpen access
Appears in Collections:NIPE - Documentos de Trabalho

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