This De losso guy said I dont understand incentives. This was cheap, man. He is my friends' friend, so I will try to be polite here, though I should not.
I suggest he reads "Incentives", a book from old Campbell, which I myself translated to Dannish.
Ok, of course it is necessary that people suffer a financial penalty if caught by a radar for radars to be effective. Jesus, my dying mom (she is 89) knows that perfectly well, mr. DL. This is part of the assumptions, my dear. Do people dodge the fines as often as DL seems to suggest? NO.
Now, there is sth called budget constraint. Why do I have to remind the readers of this basic tenet of economics? Because mr DL seems to have forgot about it. He wants officers chasing high speed drivers in every brazilian road? Jesus, man, this is preposterous. We'd have to enlist the arm forces for that, and maybe import some argentineans too. Maybe we should resort to our fighter jets to shoot high speed drivers from out of the blue! But oops...this DL plan would probably increase crime rates since all our armed men would be looking for speedy racers in our zillion roads. Criminals wouldn't have to worry much about being caught. This would certainly affect their incentives.
Man, think twice before messing with X. I am not soft as your friends from FEA. I hit back, man, and hard. This should affect your incentives.
X is a funny guy. First, he thinks Brazil is Denmark. Second, he runs away from my question about the dissemination of radars in advanced civilizations. Third, his model does no allow a change in equilibrium. True, we'd have a lot of officers chasing high speed drivers until we reach a new equilibrium. But
ResponderExcluira. It is worth considering the reduction effect on deaths;
b. What do people do with the fines they collect?
Fourth, a lot of people dodge fines, about 30%. As he lives somewhere else, he is away from reality, particularly Brazilian reality.
X, I work with data. I know reality. You seem to be in another galaxy. Come on, man, get down on Earth, Come look us up.
Finally, I am not afraid of you. I don't mind about you.
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ResponderExcluirX, in any case, wise man, the radar are disseminated in Brazil, but you still don't see a decrease in the death rates. How do you explain that? (The rates would be higher without them is naïve.)
ResponderExcluir