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Economic Development Assistance to Professional and Technical Services

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  • Hirasuna, Donald P.
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    Abstract

    A computable general equilibrium model is used to compare the economic impact of subsidies between professional and technical services, high-technology manufacturing and traded services. The results suggest that the largest increase in aggregate real income is a factor tax deduction on capital to high -technology manufacturing. A factor tax deduction for the purchase of labor within professional and technical services industries increases aggregate real income in comparison to the same subsidy awarded to high-technology manufacturing or traded services. However, subsidies to either high-technology manufacturing or traded services result in increased income inequality. Only a subsidy to traded services decreases income inequality.

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    File URL: http://purl.umn.edu/132240
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    Bibliographic Info

    Article provided by Mid-Continent Regional Science Association in its journal Journal of Regional Analysis and Policy.

    Volume (Year): 32 (2002)
    Issue (Month): 2 ()
    Pages:

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    Handle: RePEc:ags:jrapmc:132240

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    Keywords: Research and Development/Tech Change/Emerging Technologies;

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    1. Bovenberg, A. Lans & Goulder, Lawrence H., 1997. "Costs of Environmentally Motivated Taxes in the Presence of Other Taxes: General Equilibrium Analyses," National Tax Journal, National Tax Association, vol. 50(1), pages 59-88, March.
    2. Mark Horridge, 2000. "ORANI-G: A General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers op-93, Victoria University, Centre of Policy Studies/IMPACT Centre.
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