search query: @author Fuest, C. / total: 10
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| Author: | Fuest, C. Huber, B. |
| Title: | Why do governments subsidise investment and not employment? |
| Journal: | Journal of Public Economics
2000 : OCT, VOL. 78:1/2, p. 171-192 |
| Index terms: | INVESTMENT EMPLOYMENT GOVERNMENT |
| Language: | eng |
| Abstract: | The governments of nearly all industrialized 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. The authors present evidence showing that capital subsidies are empirically much more important than employment subsidies. They then develop a simple model with unemployment to explain this phenomenon. |
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