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Cost-Benefit Rules in a Regionalized Disequilibrium Model

  • Ohlsson, Henry

In 1982-83 a mining company in northern Sweden laid off 1,800 employees. The Parliament allotted SEK 309 million for a program of job-creating measures. Evaluation of these measures requires a welfare-theoretic foundation. This analysis focuses on the welfare implications of public production of private goods. These effects depend on which market output is sold and the type of taxes used to balance the public budget. The rules include partial and indirect spill-over effects that can be interpreted in terms of multipliers and marginal propensities to consume. Copyright 1987 by The editors of the Scandinavian Journal of Economics.

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Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

Volume (Year): 89 (1987)
Issue (Month): 2 ()
Pages: 165-82

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Handle: RePEc:bla:scandj:v:89:y:1987:i:2:p:165-82
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  1. Muellbauer, John & Portes, Richard, 1978. "Macroeconomic Models with Quantity Rationing," Economic Journal, Royal Economic Society, vol. 88(352), pages 788-821, December.
  2. Harberger, Arnold C, 1971. "Three Basic Postulates for Applied Welfare Economics: An Interpretive Essay," Journal of Economic Literature, American Economic Association, vol. 9(3), pages 785-97, September.
  3. Johansson, Per-Olov, 1981. " On Regional Effects of Government Policies in a Small Open Economy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 83(4), pages 541-52.
  4. Neary, J Peter & Stiglitz, Joseph E, 1983. "Toward a Reconstruction of Keynesian Economics: Expectations and Constrained Equilibria," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 199-228, Supplemen.
  5. Neary, J. P. & Roberts, K. W. S., 1980. "The theory of household behaviour under rationing," European Economic Review, Elsevier, vol. 13(1), pages 25-42, January.
  6. Johansson, Per-Olov, 1982. "Cost-benefit rules in general disequilibrium," Journal of Public Economics, Elsevier, vol. 18(1), pages 121-137, June.
  7. Robin W. Boadway & Frank R. Flatters, 1981. "The Efficiency Basis for Regional Employment Policy," Canadian Journal of Economics, Canadian Economics Association, vol. 14(1), pages 58-77, February.
  8. Barro, Robert J & Grossman, Herschel I, 1971. "A General Disequilibrium Model of Income and Employment," American Economic Review, American Economic Association, vol. 61(1), pages 82-93, March.
  9. Cuddington, John T. & Johansson, Per-Olov & Ohlsson, Henry, 1985. "Optimal policy rules and regime switching in disequilibrium models," Journal of Public Economics, Elsevier, vol. 27(2), pages 247-254, July.
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