Younger establishments (i) tend to have a higher TFPR than their respective industry average and (ii) significantly underproduce
compared with the efficient benchmark.
In other words, it is necessary to show that proxy firms routinely underproduce
information about corporate governance or that the information they produce is materially inaccurate.
Since demand for defense is a reaction function of the offensive threat, the efficient level will be defined in terms of the lower level of aggression seen when benefits of aggression are nonexcludable, but voluntary provision should still underproduce
relative to this quantity.
Theorists have long noted that markets tend to underproduce
You can't overwork the cows, but you don't want to underproduce
," Brown says.
they are undesirable and yet may also underproduce
them in the unusual
These passages remind us that ours--despite the obligatory displays of selflessness I mentioned earlier and current emphases on collaborative research--is an emphatically hierarchical profession, in which the economics of postgraduate education, seemingly designed to overproduce graduates, inexpensively staff courses, and underproduce
well-paying jobs, creates a continuing scene of competition in which the gap between a Canada Research Chair and years of renewed part-time appointments is one produced less by ability than by economic downturns and upturns, political savvy, skill at resisting depression, and chance occurrences.
If the nation continues to underproduce
college-educated workers, the large and growing gap between the earnings of Americans of different educational attainment will grow even wider.
56) As a result, the market can be expected to induce private forestlands to overproduce activities that create negative climate externalities and underproduce
activities that create positive externalities.
Maximum-activity regulation will thus not be effective in removing the factory's incentives to underproduce
Buchanan (1973) explains that a monopoly on violence is better than a more competitive market in the protection industry because monopolists tend to underproduce
Valuable invention and expression display public good characteristics of non-excludability and non-rivalry in consumption, which cause private markets to undercompensate inventors, authors, and artists, and thus underproduce