Factor subsidies, employment generation, and cost per job: a partial equilibrium approach
Factor subsidies in a perfectly competitive setting are analysed. A very general model is used to derive expressions for the effect of a factor subsidy on the price and quantity of output and the two factor inputs. These expressions are differentiated to generate qualitative results for the impact of changes in the product-demand, production-function, and factor-supply parameters on the subsidy effects. A similar procedure is used to investigate the exchequer cost per job of general labour and capital subsidies in an industry with Cobb - Douglas technology. The analysis is relieved with illustrative simulations in which 'representative' parameter values are used,
When requesting a correction, please mention this item's handle: RePEc:pio:envira:v:25:y:1993:i:3:p:317-338. 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: (Neil Hammond)
If references are entirely missing, you can add them using this form.