objectives: to implement goal-directed subsidies policy in framework of the its law is being seriously followed by state. implementing this policy as it has been defined in the law could be a deep surgery of economy with big negative consequences both in demand and supply sides if its theoretical foundation is wrong. hence, this paper aims to evaluate the theoretical sufficiency of neoclassical...

objectives: goal-directed subsidies because of its nature can affect all aspects of iranian life. this scheme is not only an economic program but also affects other aspects of social life including: welfare and economic situation of society, labor market, income, expenditure and consumption pattern models of family and social problems such as poverty and inequality, drug abuse, family problem, ...

The governments of nearly all industrialised countries use subsidies to support the economic development of specific sectors or regions with high rates of unemployment. Conventional economic wisdom would suggest that the most efficient way to support these regions or sectors is to pay employment subsidies. We present evidence showing that capital subsidies are empirically much more important th...

The sheer magnitude and growth of public monies directed toward farm-level risk management programs in developed countries is staggering. Canadian Business Risk Management (BRM) subsidies were just under $1.4 billion in 2014 (U.S. premium subsidies totalled $6.2 billion). Risk management has become the backbone of many countries’ agricultural programs and the vehicle of choice to funnel monies ...

Mortgage markets are coming of age in a number of Eastern Europe and CIS countries. As they do, governments are looking to mortgage-loan associated subsidy schemes to respond to the popular demand for improved housing. This paper presents a detailed examination of the impact of two types of subsidy schemes—mortgage interest rate write-downs, both universal and income-targeted, and income-target...

This paper introduces endogenous and directed technical change in a growth model with environmental constraints. The final good is produced from "dirty" and "clean" inputs. We show that: (i) when inputs are sufficiently substitutable, sustainable growth can be achieved with temporary taxes/subsidies that redirect innovation toward clean inputs; (ii) optimal policy involves both "carbon taxes" a...