Abstract
The previous chapter not only provided the data illustrating the cross-industry pattern of government aid. It also identified a number of activities subsidized by individual programmes. The present chapter attempts to provide a theoretical framework within which to analyse the effects on resource allocation of the subsidization of these activities. In doing so, it is necessary occasionally to draw upon the empirical results of other studies of individual types of subsidy.
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Notes
R. E. Hall and D. W. Jorgenson, “Tax Policy and Investment Behaviour”, The American Economic Review, New York, June 1967, pp. 391–414.
P. Taubman and R. Rausche, “Subsidies, Economic Lives and Complete Resource Misallocation”, The American Economic Review, December 1971, pp. 938–45.
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M. S. Feldstein and J. S. Fleming, “Tax Policy, Corporate Saving and Investment Behaviour in Britain”, The Review of Economic Studies, Cambridge, Massachusetts, October 1971, pp. 415–34;
M. A. King, “Taxation and Investment Incentives”, The Journal of Public Economics, April 1972, pp. 121–47.
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Christopher Blake, “The Effectiveness of Investment Grants as a Regional Subsidy”, The Scottish Journal of Political Economy, February 1972, pp. 63–71;
T. W. Buck and J. F. Lowe, “Regional Policy and the Distribution of Investment”, ibid., November 1972, pp. 253–71.
Nicholas Kaldor, “The Case for Regional Policies”, The Scottish Journal of Political Economy, November 1970, pp. 337–48.
Barry Moore and John Rhodes, “Evaluating the Effects of British Regional Economic Policy”, The Economic Journal, London, March 1972, pp. 87–110.
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© 1975 Trade Policy Research Centre
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Denton, G., O’Cleireacain, S., Ash, S. (1975). Effects of Subsidies on Resource Allocation. In: Trade Effects of Public Subsidies to Private Enterprise. Trade Policy Research Centre. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-02262-5_4
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DOI: https://doi.org/10.1007/978-1-349-02262-5_4
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-02264-9
Online ISBN: 978-1-349-02262-5
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