Slack, Sean; Ulph, David - School of Economics and Finance, University of St. Andrews - 2014
) and Type II (false award) classification errors, whilst, in addition, the ex post conditionality may be imperfectly … enforced. If there are no classification errors – and thus no enforcement issues – it is always optimal to set ???? > 0, whilst … ???? = 0 only if the benefit budget is sufficiently small. However, when classification errors occur, ???? = 0 only if there …