Labour Market Rents and Irish Industrial Policy
This paper examines the issue of whether harmonising taxes across the traded and nontraded sectors is desirable. Preferential treatment for the traded sector might be justified if either the output response of subsidies are higher in the traded sector or if the jobs generated in the traded sector are “better” than those in the non-traded sector. I examine these two issues using a simple two sector small open economy model to analyse the first question and input-output analysis to analyse the second. I conclude that there is no compelling argument for lower taxes on the traded sector.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Patrick Honohan, 1996. "Methodological Issues in Evaluation of Irish Industrial Policy," Papers WP069, Economic and Social Research Institute (ESRI).
When requesting a correction, please mention this item's handle: RePEc:eso:journl:v:30:y:1999:i:4:p:363-380. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frank Walsh)
If references are entirely missing, you can add them using this form.