Subsidization and Structural Change in Eastern German Transition: Did Economic Policy Meet Its Objectives?
AbstractEconomic policy interventions of a scale as effected in eastern Germany can be expected to have a significant impact on the economy, which may be in accordance with the objectives of the policy measures or manifest itself in distortions of several kinds. This paper analyzes the structural effects of investment subsidization as one of the core policy instruments by means of an error-correction model of factor demand and output. It intends to find out whether investment subsidization contributes to creating competitive economic structures, employment and growth or whether it just fosters an exaggerated capital intensity.
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 998.
Length: 96 pages
Date of creation: Aug 2000
Date of revision:
Subsidization; transition; factor demand; substitution; panel estimation;
Find related papers by JEL classification:
- E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
- 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
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
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