Tuesday, March 10, 2020

Chinese Incentive Problems

We've talked a lot in class about how data coming out of China is suspect because it is reported poorly at the lowest levels.

Marginal Revolution links to an the article by Jiayun Feng in SupChina entitled "Wuhan to reward neighborhoods with $72,000 for having no new coronavirus cases". The title says it all.

While there are checks on the system, they do not appear to be very strong. And, it's not free money — there are checklists of things that need to be done to get the awards. It has been in place since March 1.

New cases in Hubei were down to 13 Tuesday. Hmmm.

No comments:

Post a Comment