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Study on methods to analyse the impact of state aid on competition

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Author Info

  • Rainer Nitsche
  • Paul Heidhues

Abstract

One of the potential benefits of an economic approach to State aid control is to make relationships between the costs and the benefits of State aid more transparent and, by doing so, to provide guidance on how to focus State aid control efforts on those areas where the damage of State aid is the greatest. Where markets fail to deliver efficient outcomes, Government intervention, including the provision of State aid, can improve welfare. This is an accepted result in the economic literature. Many national or supra-national bodies do not provide a mechanism to monitor and discipline the State aid provided by its members. Indeed, the control of State aid in the European Union stands out.

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File URL: http://ec.europa.eu/economy_finance/publications/publication804_en.pdf
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Bibliographic Info

Paper provided by Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission in its series European Economy - Economic Papers with number 244.

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Length: 190 pages
Date of creation: Feb 2006
Date of revision:
Handle: RePEc:euf:ecopap:0244

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Related research

Keywords: state aid; government intervention; market failure; policy evaluation; Nitsche; Heidhues;

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Cited by:
  1. Bruno Chiarini & Elisabetta Marzano & Francesco Busato & Pasquale De Angelis, 2007. "State Aid Policies and Underground Activities," Discussion Papers 4_2007, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
  2. Glowicka, Ela, 2006. "Effectiveness of bailouts in the EU," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 176, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  3. Jens Hölscher & Nicole Nulsch & Johannes Stephan, 2010. "State Aid in the Enlarged European Union. An Overview," IWH Discussion Papers 24, Halle Institute for Economic Research.
  4. Francesco Busato & Bruno Chiarini & Pasquale De Angelis & Elisabetta Marzano, 2008. "Firm-oriented policies, tax cheating and perverse outcomes," Discussion Papers 10_2008, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.

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