The Additionality, Displacement and Substitution Effects of Factor Subsidies
AbstractIn this paper, a Cournot multifirm oligopolisitc framework is used to analyze the output and employment impacts of selective factor subsidies. Additionality, displacement, and substitution effects are all separately identified. The paper argues that the methods used in existing empirical studies to identify additionality and displacement are likely to be inaccurate and that this is more problematic the more selective the subsidies are. Copyright 1995 by Scottish Economic Society.
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Bibliographic InfoArticle provided by Scottish Economic Society in its journal Scottish Journal of Political Economy.
Volume (Year): 42 (1995)
Issue (Month): 2 (May)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0036-9292
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- Helena Lenihan, 2004. "Evaluating Irish industrial policy in terms of deadweight and displacement: a quantitative methodological approach," Applied Economics, Taylor & Francis Journals, vol. 36(3), pages 229-252.
- Kim Swales, 2008. "The Relative Efficiency of Automatic and Discretionary Industrial Aid," Working Papers 0812, University of Strathclyde Business School, Department of Economics.
- Girma, Sourafel & Görg, Holger & Strobl, Eric & Walsh, Frank, 2008.
"Creating jobs through public subsidies: An empirical analysis,"
Elsevier, vol. 15(6), pages 1179-1199, December.
- Girma, Sourafel & Görg, Holger & Strobl, Eric & Walsh, Frank, 2007. "Creating Jobs Through Public Subsidies: An Empirical Analysis," IZA Discussion Papers 3168, Institute for the Study of Labor (IZA).
- Picard, P. M., 1996. "Efficient Wage Subsidies in Private Firms and Deadweight Spending," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1996020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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