In an attempt to protect workers from unemployment, governments in some countries subsidize firms which would otherwise fail. This article examines the effects of such subsidies on output, prices, and welfare. It also briefly reviews the effects for varying price elasticities of supply and demand, for nontraded and fully traded goods, and for firms in which wages exceed their free market level. If the firm produces a nontraded good, the "sickness"...
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INFORMACIÓN
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1990/01/31
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Artículo de periódico
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14253
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1
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1
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2010/07/01
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Industrial sickness, primary and secondary : the effects of exit constraints on industrial performance
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cost per unit of output