Corrective Policy and Goodhart's Law: The Case of Carbon Emissions from Automobiles
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Firms sometimes comply with externality-correcting policies by gaming the measure that determines policy. We show theoretically that such gaming can benefit consumers, even when it induces them to make mistakes, because gaming leads to lower prices by reducing costs. We use our insights to quantify
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美国国家经济研究局创建时间：
2016-12-01
