Thursday, October 04, 2012

How China Got Businesses to Pay Taxes: Scratch-n-Win

Positive reinforcement programs, like China's lottery receipt program, can make governance better, say experts like Richard Thaler, a professor of economics and behavioral science at Chicago University's Booth School of Business. Typically, the governments use "exhortation and fines" to make citizens behave, but, "these efforts are usually ineffective," he wrote in an oped. Though lotteries like the one in China are only one way positive reinforcement can work – England got its citizens to recycle 35 percent more by allowing them to earn points for free merchandise – Mr. Thaler writes, "The moral here is simple. If governments want to encourage good citizenship, they should try making the desired behavior more fun." more

No comments: