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dc.contributor.authorHolmås, Tor Helge-
dc.contributor.authorKjerstad, Egil-
dc.contributor.authorLurås, Hilde-
dc.contributor.authorStraume, Odd Rune-
dc.identifier.citationNIPE Working Paper series; 17eng
dc.description.abstractWe 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.eng
dc.description.sponsorshipNIPE – Núcleo de Investigação em Políticas Económicas – is supported by the Portuguese Foundation for Science and Technology through the Programa Operacional Ciência e Inovação 2010 (POCI 2010) of the III Quadro Comunitário de Apoio (QCA III), which is financed by FEDER and Portuguese funds.eng
dc.publisherUniversidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)eng
dc.subjectMotivation crowdingeng
dc.subjectIntrinsic motivationeng
dc.subjectMonetary punishmenteng
dc.subjectHospital bed blockingeng
dc.titleDoes monetary punishment crowd out pro-social motivation? the case of hospital bed-blockingeng
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