But a retroactive tax cut, one that applies to income you've already earned, can't have any incentive effects; so why tilt it toward the top?

Positive economic incentive effects from reduced marginal tax rates will push out the aggregate supply curve to more than absorb demand increases without raising prices.

"Animals don't always respond faster for more food: The paradoxical incentive effect."

Orthodox economists do not entirely dismiss the incentive effects of lower tax rates.

Their aim was to see what incentive effects financial aid to poor families would produce.

A case can be made that the incentive effects of copyright call for protection for no more than 20 or 30 years at most.

"The 50-cent price of the T.G.R. would have the same incentive effect as a 50-cent gasoline tax," he wrote.

This trades off efficiency for longer-term incentive effects for the recording industry.

However, these biases introduce noise into the relationship between pay and effort, reducing the incentive effect of performance-related pay.

Furthermore, the incentive effect of an improved family policy must logically be stronger among foreign parents who have come from poor countries.