IDEAS home Printed from https://ideas.repec.org/a/oup/ecpoli/v14y1999i28p14-53..html
   My bibliography  Save this article

The effects and policy implications of state aids to industry: an economic analysis

Author

Listed:
  • Timothy Besley
  • Paul Seabright

Abstract

Summary State aids Making EU policy properly reflect geography and subsidiarityThe use of state aids to industry is a poorly understood part of competition policy. Currently, the EU Commission presumes that state aids distort competition, yet it approves 98% of applications, often for social or distributional reasons. We argue that proper regulation of state aids should focus on two issues, the externalities generated and the inefficiencies arising from failures in competition between governments. We thus develop a new framework for EU policy and compare its implications with the existing practice of the EU Commission.— Timothy Besley and Paul Seabright

Suggested Citation

  • Timothy Besley & Paul Seabright, 1999. "The effects and policy implications of state aids to industry: an economic analysis," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 14(28), pages 14-53.
    • Handle: RePEc:oup:ecpoli:v:14:y:1999:i:28:p:14-53.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/1468-0327.00043
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ecpoli:v:14:y:1999:i:28:p:14-53.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/cebruuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.