
In November, in a blog item about organ donation, I blogged about what's known as misaligned incentives in economics. An example was offered from Steven D. Levitt and Stephen J. Dubner's SuperFreakonomics from the ambulance business in mid-20th century America.
"Ambulances were often run by the local mortuary. It is hard to think of a better example of misaligned incentives: a funeral director who is put in charge of helping a patient not die!"Now we have another example much closer to home. After the jump, how the state of Texas encourages local school districts to get sick children to drag their sorry butts out of bed and get to school.