Industrial Subsidies in Sweden: Macro-Economic Effects and an International Comparison
AbstractBetween 1970 and 1978, industrial subsidies in Sweden rose from 4.9 % to 16 % of value added in mining and manufacturing. Most of this increase was due to increased wage subsidies to specific firms facing acute difficulties. The Swedish industrial subsidy program seems to be both larger in relation to industrial output and more selective than similar programs in Great Britain, Italy, Norway, and West Germany. Simulations on a firm-based macro model of the Swedish economy show that a selective wage subsidy yields higher industrial output, employment and export in the short run than alternative subsidy policies but also considerably worse economic performance in the longer term.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 58.
Length: 38 pages
Date of creation: Nov 1982
Date of revision:
Contact details of provider:
Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
Fax: +46 8 665 4599
Web page: http://www.ifn.se/
More information through EDIRC
Subsidies; Manucatruing; Industry; Wage;
Find related papers by JEL classification:
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
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