IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Optimal tax-subsidy policies for industrial adjustment to uncertain shocks

  • BOADWAY, Robin W.
  • WILDASIN, David E.

This paper analyzes the role of government policy when random shocks affect particular industries, occupations, or regions. Workers can freely choose an industry or occupation ex ante, and can relocate, but only at a cost, once uncertainty is resolved. The policy instruments available to the government are per capita taxes and subsidies. These are chosen either to maximize ex post utilitarian aggregate welfare, treating the initial assignment of workers as exogenously fixed (ex post optimal policy), or to maximize the ex ante expected utility of a representative workers, taking the effect of policy choice on the ex ante allocation of labor into account (ex ante optimal). Ex ante and ex post optimal policies are compared, with or without institutional constraints on the set of instruments. Optimal policies range from complete equalization of net incomes across workers to no equalizing transfers at all depending on the instruments available and the nature of relocation costs. Copyright 1990 by Royal Economic Society.

(This abstract was borrowed from another version of this item.)

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers RP with number -889.

in new window

Date of creation:
Date of revision:
Handle: RePEc:cor:louvrp:-889
Note: In : Oxford Economic Papers, 42, 105-134, 1990
Contact details of provider: Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)
Phone: 32(10)474321
Fax: +32 10474304
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cor:louvrp:-889. 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: (Alain GILLIS)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.