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Why do governments subsidise investment and not employment?

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  • Fuest, Clemens
  • Huber, Bernd

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File URL: http://www.sciencedirect.com/science/article/B6V76-410MHCN-8/2/7904e754bc1f0bbd39d789d828a51956
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Bibliographic Info

Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 78 (2000)
Issue (Month): 1-2 (October)
Pages: 171-192

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Handle: RePEc:eee:pubeco:v:78:y:2000:i:1-2:p:171-192

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Web page: http://www.elsevier.com/locate/inca/505578

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References

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  1. Austan Goolsbee, 1998. "Investment Tax Incentives, Prices, And The Supply Of Capital Goods," The Quarterly Journal of Economics, MIT Press, vol. 113(1), pages 121-148, February.
  2. Kolm, Ann-Sofie, 1998. "Differentiated payroll taxes, unemployment, and welfare," Journal of Public Economics, Elsevier, vol. 70(2), pages 255-271, November.
  3. Svejnar, Jan, 1986. "Bargaining Power, Fear of Disagreement, and Wage Settlements: Theory and Evidence from U.S. Industry," Econometrica, Econometric Society, vol. 54(5), pages 1055-78, September.
  4. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
  5. Denny, K. & Nickell, S., 1990. "Unions And Investment In British Industry," Economics Series Working Papers 9992, University of Oxford, Department of Economics.
  6. MaCurdy, Thomas E & Pencavel, John H, 1986. "Testing between Competing Models of Wage and Employment Determination in Unionized Markets," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S3-S39, June.
  7. Anderson, Simon P & Devereux, Michael, 1988. " Trade Unions and the Choice of Capital Stock," Scandinavian Journal of Economics, Wiley Blackwell, vol. 90(1), pages 27-44.
  8. Oswald, A. J., 1995. "Efficient contracts are on the labour demand curve: Theory and facts," Labour Economics, Elsevier, vol. 2(1), pages 102-102, March.
  9. Connolly, Robert A & Hirsch, Barry T & Hirschey, Mark, 1986. "Union Rent Seeking, Intangible Capital, and Market Value of the Firm," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 567-77, November.
  10. Gaute Torsvik, 1993. "Regional-incentive programs and the problem of time-inconsistent plans," Journal of Economics, Springer, vol. 58(2), pages 187-202, June.
  11. George A. Akerlof & Andrew K. Rose & Janet L. Yellen & Helga Hessenius, 1991. "East Germany in from the Cold: The Economic Aftermath of Currency Union," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 1-106.
  12. Sinn, Hans-Werner, 1995. "Factor Price Distortions and Public Subsidies in East Germany," CEPR Discussion Papers 1155, C.E.P.R. Discussion Papers.
  13. David Begg & Richard Portes, 1993. "Eastern Germany since unification: wage subsidies remain a better way," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 1(4), pages 383-400, December.
  14. Devereux, Michael B. & Lockwood, Ben, 1991. "Trade unions, non-binding wage agreements, and capital accumulation," European Economic Review, Elsevier, vol. 35(7), pages 1411-1426, October.
  15. Sinn, Gerlinde & Sinn, Hans-Werner, 1992. "Kaltstart. Volkswirtschaftliche Aspekte der Deutschen Vereinigung," Monograph, Mohr Siebeck, Tübingen, edition 2, number urn:isbn:9783161459429, Octomber.
  16. Grout, Paul A, 1984. "Investment and Wages in the Absence of Binding Contracts: A Nash Bargining Approach," Econometrica, Econometric Society, vol. 52(2), pages 449-60, March.
  17. Clemens Fuest & Bernd Huber, 1998. "Why Do Countries Subsidize Investment and Not Employment?," NBER Working Papers 6685, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Andreas Haufler & Ferdinand Mittermaier, 2008. "Unionisation triggers tax incentives to attract foreign direct investment," Working Papers 052, Bavarian Graduate Program in Economics (BGPE).
  2. Philippe Martin, 2005. "The geography of inequalities in Europe," Sciences Po publications info:hdl:2441/9283, Sciences Po.
  3. Dupont, Vincent & Martin, Philippe, 2003. "Subsidies to Poor Regions and Inequalities: Some Unpleasant Arithmetic," CEPR Discussion Papers 4107, C.E.P.R. Discussion Papers.
  4. Fuest, Clemens & Huber, Bernd, 2006. "Can regional policy in a federation improve economic efficiency?," Journal of Public Economics, Elsevier, vol. 90(3), pages 499-511, February.
  5. Thorsten Bayindir-Upmann & Anke Gerber, 2003. "The Kalai-Smorodinsky Solution in Labor-Market Negotiations," CESifo Working Paper Series 941, CESifo Group Munich.
  6. Bijie Ren, 2008. "The regional effects of marginal wage subsidies," Psychometrika, Springer, vol. 3(4), pages 598-626, December.
  7. Christian Josef Bauer & Ronald B. Davies & Andreas Haufler, 2011. "Economic Integration and the Optimal Corporate Tax Structure with Heterogeneous Firms," CESifo Working Paper Series 3566, CESifo Group Munich.
  8. Kangasharju, Aki & Venetoklis, Takis, 2002. "Effect of business subsidies on labour demand: overall evaluation with regional extensions," ERSA conference papers ersa02p172, European Regional Science Association.
  9. Takis Venetoklis & Aki Kangasharju, 2002. "Business Subsidies and Employment of Firms: Overall Evaluation and Regional Extension," Discussion Papers 268, Government Institute for Economic Research Finland (VATT).
  10. repec:spo:wpecon:info:hdl:2441/9283 is not listed on IDEAS
  11. Knabe, Andreas, 2009. "Implementing endogenous inside options in Nash wage bargaining models," Mathematical Social Sciences, Elsevier, vol. 57(2), pages 161-176, March.
  12. Camelia Romocea-Turcu, 2008. "Regional disparities in industry location and income: a footloose capital model," Jahrbuch für Regionalwissenschaft, Springer, vol. 28(2), pages 145-177, September.

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