Subsidizing Test Prep

Test Prep

Now video games seem to be in nearly every home in America. Interactive game revenues—at $20 billion annually (Cohen 2000)—are now as great as those of the retail software industry, and significantly greater than those of the domestic film industry (“Industrial Strengths: New vs. Old Economy Earnings” 2000). Given this pervasiveness, educators are faced with many challenges connected with video...

Subsidizing Extra Jobs

directed the Chair of Public Economics, for giving me the opportunity to pursue my research interests and for his encouragement and support throughout the project. Without his academic guidance, his soft, but determined pressure for results and his enthusiasm to prove that economic theory can make a difference to economic policymaking, this dissertation would never have been completed. Wehke – ...

Subsidizing (And Taxing) Business Procurement

This paper studies the effect of a subsidy (or tax) on a market where a downstream manufacturer uses a competitive tender to procure inputs from upstream suppliers. Subsidizing input production can result in input price decreases that are greater than the effective decrease in marginal costs. That is, overshifting occurs. When the size of the subsidy is not too large, the downstream firm can en...

To prep or not to prep.

Is Subsidizing Inefficient Bidders Actually Costly?

Michael H. Rothkopf • Ronald M. Harstad • Yuhong Fu Rutgers Business School and RUTCOR, Rutgers University, 640 Bartholomew Road, Piscataway, New Jersey 08854-8003 Rutgers Business School and RUTCOR, Rutgers University, 640 Bartholomew Road, Piscataway, New Jersey 08854-8003 Moody’s, 96 Church Street, New York, New York 10007 [email protected] • [email protected] • yvonne.fu@...