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Characteristics of Government Supported Firms

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  • Bergström, Fredrik

    (Dept. of Economics, Stockholm School of Economics)

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    Abstract

    Governments all over the world grant different types of subsidies to firms which are said to have a lack-of-capital problem. However, it is unclear if governments have the information and motivation to target firms which have problems to finance profitable project via the private capital markets. Based on hypotheses derived from interest group theory, this paper compares (econometrically) characteristics of Swedish firms targeted for selective regional policy supports with randomly chosen non-supported firms. The results give some support for an interest group interpretation of the allocation of subsidies.

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    Bibliographic Info

    Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 283.

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    Length: 27 pages
    Date of creation: 23 Nov 1998
    Date of revision:
    Handle: RePEc:hhs:hastef:0283

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    Related research

    Keywords: Allocation of subsidies; regional policy; industrial policy; interest group theories;

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