In this paper, we extend the Romer (1990) model in two ways. First, we include energy consumption of intermediates. Secondly, intermediates become heterogeneous due to endogenous energy saving technical change. However, aggregate effective capital is still subject to endogenous technical change of the ‘love of variety’ type, as in the original Romer model. We show that the resulting system can ...

This paper attempts to shed light on the drivers causing international fuel prices be passed through domestic retail prices. While many developing countries limit price pass prices, others do not. In former, large subsidies can emerge, thereby threatening fiscal sustainability, worsening income distribution and setting back efforts fight climate change. Against this backdrop, we examine factors...

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...

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 ...

We use a two-stage experiment to study how short-term subsidy for new product affects uptake, usage, and future demand the same (a solar lamp). an auction design gauge willingness-to-pay, randomly vary strike price across villages create random variation in purchase prices uptake villages. Our main results are that subsidies do not adversely affect subsequent use, but stimulate uptake. If depre...

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 ...

Ecosystems are linked to neighbouring ecosystems not only by dispersal, but also by the movement of subsidy. Such subsidy couplings between ecosystems have important landscape-scale implications because perturbations in one ecosystem may affect community structure and functioning in neighbouring ecosystems via increased/decreased subsidies. Here, we combine a general theoretical approach based ...