Subsidization and Structural Change in Eastern German Transition: Did Economic Policy Meet Its Objectives?

Arbeitspapier

Economic policy interventions of a scale as effected in eastern Germany can be expected to have a significant impact on the economy, which may be in accordance with the objectives of the policy measures or manifest itself in distortions of several kinds. This paper analyzes the structural effects of investment subsidization as one of the core policy instruments by means of an error-correction model of factor demand and output. It intends to find out whether investment subsidization contributes to creating competitive economic structures, employment and growth or whether it just fosters an exaggerated capital intensity.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 998

Classification and Topics

• Classification: Wirtschaft ; Model Construction and Estimation ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Taxation, Subsidies, and Revenue: General ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Macroeconomics: Production ; Investment; Capital; Intangible Capital; Capacity
• Subject: Subsidization ; transition ; factor demand ; substitution ; panel estimation ; Investitionspolitik ; Wirtschaftspolitische Wirkungsanalyse ; Faktornachfrage ; Faktorsubstitution ; Kapitalintensität ; Schätzung ; Wirtschaftliche Anpassung ; Beschäftigungseffekt ; Produktivität ; Neue Bundesländer

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gerling, Katja
• Event: Veröffentlichung
• (who): Kiel Institute of World Economics (IfW)
• (where): Kiel
• (when): 2000

Further information

• Handle: http://hdl.handle.net/10419/17698
• Last update: 10.03.2025, 11:43 AM CET