Cost-Benefit Rules in a Regionalized Disequilibrium Model
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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Volume (Year): 89 (1987)
Issue (Month): 2 ()
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References listed on IDEAS
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- Muellbauer, John & Portes, Richard, 1978. "Macroeconomic Models with Quantity Rationing," Economic Journal, Royal Economic Society, vol. 88(352), pages 788-821, December.
- Robin W. Boadway & Frank R. Flatters, 1981.
"The Efficiency Basis for Regional Employment Policy,"
Canadian Journal of Economics,
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- Robin Boadway & Frank Flatters, 1979. "The Efficiency Basis for Regional Employment Policy," Working Papers 341, Queen's University, Department of Economics.
- 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.
- Johansson, Per-Olov, 1982. "Cost-benefit rules in general disequilibrium," Journal of Public Economics, Elsevier, vol. 18(1), pages 121-137, June.
- 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.
- Neary, J.P & Roberts, K.W.S, 1978.
"The Theory of Household Behaviour under Rationing,"
The Warwick Economics Research Paper Series (TWERPS)
132, University of Warwick, Department of Economics.
- 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.
- 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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