Thomas Gehrig, Lukas Menkhoff, 02 March 2009

Bonuses are seen as drivers of greed, irresponsibly, and short-sighted behaviour. This column discusses the research on how bonuses affect bankers’ behaviour. It argues that bonuses are a valuable tool for guiding managers to do what’s right for corporations and even society. The debate should be about performance criteria and sustainable goals, not the size of bonus payments.

Nattavudh Powdthavee, Andrew Oswald, 30 October 2007

In previous decades, economists were famous for ignoring everything they couldn’t measure; now they assign a monetary value to almost anything. Recent research on happiness provides a new approach to guide courts in setting financial compensation in tort cases for individuals’ losses from bereavement.


CEPR Policy Research