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Government Subsidies

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  • Schwartz, Gerd
  • Clements, Benedict
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    Abstract

    This paper addresses the problems of defining and measuring government subsidies, examines why and how government subsidies are used as a fiscal policy tool, discusses their general economic effects in terms of real welfare costs and distributional implications, appraises international empirical evidence on government subsidies, and offers options for their reform. Recent international trends in government subsidy expenditure are analyzed for the 16-year period from 1975 to 1990, using general government subsidy data for 60 countries from the United Nations' System of National Accounts (SNA). The paper reviews major policy options for subsidy reform, focusing on ways to improve the cost-effectiveness of subsidy programs. Copyright 1999 by Blackwell Publishers Ltd

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Economic Surveys.

    Volume (Year): 13 (1999)
    Issue (Month): 2 (April)
    Pages: 119-47

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    Handle: RePEc:bla:jecsur:v:13:y:1999:i:2:p:119-47

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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0950-0804

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    Cited by:
    1. Pierre-André Buigues & Khalid Sekkat, 2011. "Public Subsidies to Business: An International Comparison," Journal of Industry, Competition and Trade, Springer, vol. 11(1), pages 1-24, March.
    2. Levén, Per & Holmström, Jonny & Mathiassen, Lars, 2014. "Managing research and innovation networks: Evidence from a government sponsored cross-industry program," Research Policy, Elsevier, vol. 43(1), pages 156-168.
    3. Chandra Prakash Bhambhri & Parkash Chander, 2001. "Subsidy Reforms and Poverty Alleviation," IMF Working Papers 01/126, International Monetary Fund.
    4. Mulder, Arjen, 2008. "Do economic instruments matter? Wind turbine investments in the EU(15)," Energy Economics, Elsevier, vol. 30(6), pages 2980-2991, November.
    5. Hernán Rincón & Aaron Garavito, 2004. "Mercado Actual de la Gasolina y del ACPM en Colombia e Inflación," BORRADORES DE ECONOMIA 003202, BANCO DE LA REPÚBLICA.

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