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An Optimizing Approach to Factor and Production Subsidies in a Small Open Economy with Classical Unemployment
University College Dublin, IIES.
1984 (English)Report (Other academic)
Abstract [en]

This paper presents a two-period model of a small open economy with a rigid real wage and classical unemployment. The optimal levels of three common aggregate-supply policies - employment, investment and production subsidies - and their effects on social welfare, the government budget and the balance of payments, are analysed and contrasted. The costs and benefits of firm- and sector-specific subsidies are also considered.

Place, publisher, year, edition, pages
Stockholm: IIES , 1984. , 43 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 293
National Category
URN: urn:nbn:se:su:diva-41313OAI: diva2:329448
Published in connection with a visit at the IIESAvailable from: 2010-07-12 Created: 2010-07-12 Last updated: 2010-07-12

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ReferencesLink to record
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