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Government Subsidies

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  • Gerd Schwartz
  • Réjane Hugounenq
  • Benedict J. Clements
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    Abstract

    This paper addresses the problems of defining and measuring government subsidies, examines why and how government subsidies are used as a fiscal policy tool, assesses their economic effects, appraises international empirical evidence on government subsidies, and offers options for their reform. Recent international trends in government subsidy expenditure are analyzed for the 16-year period from 1975 to 1990, using general government subsidy data for 60 countries from the System of National Accounts (SNA) and central government expenditure on subsidies and other current transfers for 68 countries from Government Finance Statistics (GFS). The paper reviews major policy options for subsidy reform, focusing on ways to improve the cost-effectiveness of subsidy programs.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 95/91.

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    Length: 58
    Date of creation: 01 Sep 1995
    Date of revision:
    Handle: RePEc:imf:imfwpa:95/91

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    Cited by:
    1. Huther, Jeff & Shah, Anwar, 2000. "Anti-corruption policies and programs : a framework for evaluation," Policy Research Working Paper Series 2501, The World Bank.
    2. Takis Venetoklis, 2001. "Business Subsidies and Bureaucratic Behaviour - A Revised Approach," Research Reports 83, Government Institute for Economic Research Finland (VATT).
    3. Hernán Rincón & Aaron Garavito, . "Mercado Actual de la Gasolina y del ACPM en Colombia e Inflación," Borradores de Economia 287, Banco de la Republica de Colombia.
    4. Takis Venetoklis, 2001. "Business Subsidies and Bureaucratic Behaviour," Research Reports 79, Government Institute for Economic Research Finland (VATT).
    5. Enrique Ospina, . "Importaciones Agropecuarias: A qué Responden?," Borradores de Economia 107, Banco de la Republica de Colombia.
    6. Enrique Ospina G., 1998. "Importaciones Agropecuarias: A Que Responden?," BORRADORES DE ECONOMIA 002817, BANCO DE LA REPÚBLICA.

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