This paper proposes an approach for ex-ante welfare analysis under in-kind transfers based on demand system estimation and construction of virtual prices (i.e., the at which beneficiaries would be as well off with subsidy). As application this approach, I study a program randomly transferred either food basket, procured discount in wholesale markets, or equal-cost cash transfer to poor househol...

We analyze the effects of a large place-based policy, subsidizing up to 50% investment costs manufacturing firms in East Germany after reunification. show that 1-percentage-point decrease subsidy rate leads 1% employment. document important spillovers for untreated sectors treated counties, counties connected via trade and local taxes, whereas we do not find on same labor market. policy is at l...

Over the last four decades, the average Gaussian-risk-adjusted return on a stock portfolio that goes long in the largest banks and short in the smallest banks is minus 7 %. Moreover, this portfolio provides US investors with insurance against recessions, even though the cash flows of large banks seem more exposed to macroeconomic risk. Using the rare events model of ?, we interpret the 7% as a ...

terms of expenditure. The Earned Income Tax Credit (EITC) program, an earnings subsidy program, which provides tax credits to low-income families with earnings, is third largest. The Food Stamp program, which provides food coupons to the poor, and programs for subsidized housing for the poor are fourth and fifth, respectively. The TANF program is, as the table shows, only the sixth largest prog...

The paper introduces tax evasion through subsidies due to false declarations of charitable donations. The study distinguishes between a rebate and match subsidy in an experimental setting. Under the rebate subsidy the individual gets the subsidy, while under the match subsidy the charity organization gets the subsidy. First, I develop a theoretical model of charitable giving and tax evasion. Se...

This study uses three rounds of panel data between October 1998 and November 1999 and covering 506 villages and 24,000 households in rural Mexico, to examine how the replacement of pre-existing subsidy programs by a conditional cash transfer program such as PROGRESA (the Health, Education and Nutrition Program) affects the consumption smoothing of households. The results obtained are consistent...

Among the agricultural important factors, inputs are the most significant in agricultural production. This article aimed to examine the impact of government subsidy policies on production of one of the most strategic products, namely on production of one of the most strategic products, namely maize, in Iran. To achieve this goal, panel data for the nine provinces of Iran's major producers of ma...

Adopt principal component regression for researching the optimal subsidy mode of cotton production in China. The result indicates that, from the perspective of economic stimulatory effect, the optimal cotton subsidy in China is farm chemical subsidy rather than seed subsidy. The reason is that there are frequent pest disasters in cotton producing areas in China. So farm chemical subsidy is the ...

This paper constructs a simple model to illustrate that the current food stamp subsidy scheme fails to achieve its aim due to the crowding-out effect. In particular, if the household income is sufficiently low, only the corner solution exists and full subsidy is needed. The optimal food stamp subsidy scheme is identified and the subsidy efficiency rate is introduced to measure the impact on foo...