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Human Incentives

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The Greek Economy and the Crisis

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Abstract

The shaping of incentives in a society influences the shaping of the economic performance of the entire system. The process of resource allocation and the shaping of incentives is crucial to the development of the system in the Greek economy. Most importantly, they shape the future conditions of resource allocation and the new political institutions. These two conditions restart the entire system from a new base that essentially determines its future. This chapter therefore examines issues of resource allocation and the shaping of the incentives of individuals and businesses in the Greek society and economy.

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Notes

  1. 1.

    This is Walras’ classical analysis on offer and demand.

  2. 2.

    This administrative “ankylosis” was lifted with a new legislative regulation in June 2010.

  3. 3.

    The sample of businesses is structured as follows: 20% of businesses are active in industry, 44% in trade and 36% in the services sector. 31% of those businesses employ own funds below €150,000, 39% of businesses use own funds between €150,000 and €1 m, while the remaining 30% have own funds between €1 m and €10 m.

  4. 4.

    We addressed 800 participants in the Program of Complementary Education of the National and Kapodistrian University of Athens via email. 386 people responded. 59% of the participants were women. 53% were university degree holders, 13% technical education degree holders, 14.5% were holders of a master’s degree and 13.5% were graduates of secondary education. 41% of the people questioned belonged to the age group of 20–30 years, 34% belonged to the age category of 30–40 and 20% to the age category of 40–50.

  5. 5.

    See indicatively Thomas (1992), Lippert and Walker (1997), Schneider (1994, 1997, 1998, 2000), Johnson et al. (1998a, b), Tanzi (1999) and Giles (1999).

  6. 6.

    See indicatively Johnson et al. (1998b), Deregulation Commission, Germany (1990/1991).

  7. 7.

    See the newspaper “Vima tis Kyriakis”, 1/10/2006.

  8. 8.

    Greek Economic Chamber of Commerce (2010), http://www.oe-e.gr/publ/ecocr/res_for_20102702.pdf.

  9. 9.

    The gross capital stock is in turn defined as the acquisition value/price of assets, calculated as new, regardless of their age and their actual condition.

  10. 10.

    The net operation surplus and the capital stock result from European Commission data (http://ec.europa.eu/economy_finance/ameco/user/serie/ResultSerie.cfm).

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Authors and Affiliations

  1. Department of Economics, National and Kapodistrian University of Athens, Stadiou 5, 10562, Athens, Greece

    Prof. Panagiotis Petrakis

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  1. Prof. Panagiotis Petrakis
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Correspondence to Panagiotis Petrakis .

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Petrakis, P. (2012). Human Incentives. In: The Greek Economy and the Crisis. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-21175-1_9

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  • DOI: https://doi.org/10.1007/978-3-642-21175-1_9

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