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Labour Market Rents and Irish Industrial Policy

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  • Frank Walsh

    (University College Dublin)

Abstract

This paper examines the issue of whether harmonising taxes across the traded and nontraded sectors is desirable. Preferential treatment for the traded sector might be justified if either the output response of subsidies are higher in the traded sector or if the jobs generated in the traded sector are “better” than those in the non-traded sector. I examine these two issues using a simple two sector small open economy model to analyse the first question and input-output analysis to analyse the second. I conclude that there is no compelling argument for lower taxes on the traded sector.

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File URL: http://www.esr.ie/vol30_4/2_Walsh.pdf
File Function: First version, 1999
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Bibliographic Info

Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 30 (1999)
Issue (Month): 4 ()
Pages: 363-380

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Handle: RePEc:eso:journl:v:30:y:1999:i:4:p:363-380

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  1. Patrick Honohan, 1996. "Methodological Issues in Evaluation of Irish Industrial Policy," Papers WP069, Economic and Social Research Institute (ESRI).
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Cited by:
  1. Nooraddin Sharify, 2007. "A New Approach to Compare the Impact of Direct and Indirect Payments on Regional Macroeconomic Indices," Iranian Economic Review, Economics faculty of Tehran university, vol. 12(1), pages 193-211, winter.

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