The German unī cation process imposed a signī cant price-cost squeeze on eastern ̄rms. Important technology di®erences between the East and the West generated high pressures on the competitive position of eastern manufacturing ̄rms when product and factor markets integration took place. In order to avoid mayor employment and output costs, the government subsidized eastern ̄rms. A similar proces...

Abstract I provide novel empirical evidence on the effectiveness of public funding in lagging behind areas by investigating effect a subsidy program implemented Campania region (South Italy) and targeting SMEs. By relying Difference-in-Differences approach, my estimates demonstrate that regional produces sizable increase private firms’ innovative investment spending. However, show also large he...

considering the importance of the impact of subsidy reform on the agricultural sector, the study aimed at understanding consequences of changes in the rates of production subsidy using general equilibrium model based on input-output table in the year 2001.the study conducted based on three scenarios containing step, down and finally removed rates of production subsidy. the effects on production...

BACKGROUND The Tanzanian health insurance system comprises multiple health insurance funds targeting different population groups but which operate in parallel, with no mechanisms for redistribution across the funds. Establishing such redistributive mechanisms requires public support, which is grounded on the level of solidarity within the country. The aim of this paper is to analyse the percept...

a r t i c l e i n f o This paper uses a real-option model to examine the net benefit to a government from using tax cut and/or investment subsidy as incentives to induce immediate investment. Although earlier papers generally concluded that investment subsidy dominates tax cut, it is observed that many governments use a combination of subsidy and tax cut. We show that, when the government uses ...

This paper examines regulatory incentive mechanisms for efficient investment in the transmission network, taking into account both technological externalities among transmission lines and information asymmetry between the regulator and the transmission company (Transco). First, by adding extra constraints associated with the power flow, we develop an extended price cap mechanism that can intern...

Researchers often hold out data from the estimation of econometric models to use for external validation. In this paper we examine possible rationales for this practice. For concreteness, two examples are considered. The first example (Todd and Wolpin (2008)) is taken from the microeconometrics literature. Suppose the goal is to evaluate the impact of a monetary subsidy to low-income households...

PROBLEM The Chinese central government launched the Health System Reform Plan in 2009 to strengthen disease control and health promotion and provide a package of basic public health services. Village doctors receive a modest subsidy for providing public health services associated with the package. Their beliefs about this subsidy and providing public health services could influence the quality ...

The risk of supply disruptions due to suppliers’ financial problems plays a prominent role in manufacturers’ risk portfolios. Even large suppliers (e.g. Delphi) could file for bankruptcy, and manufacturer’s actions, such as financial subsidies to the suppliers, affect profoundly suppliers’ financial health. Using a dynamic, stochastic, periodic-review model of the manufacturer’s joint capacity ...