Konferenzbeitrag
Backing the right horse: Entry versus fixed costs subsidies
This paper provides a tractable dynamic stochastic general equilibrium framework with endogenous firm creation and destruction and variable technology utilization to analyze the macroeconomic impact of entry costs and fixed cost subsidies. Based on this setup, we revisit empirical and theoretical evidence on the macroeconomic effects of competition-enhancing industrial policies to shed light on the causes of the in part ambiguous results found in the literature. Our simulations confirm the findings of a potentially beneficial impact of both entry costs and fixed cost subsidies on output and employment. The welfare effects, however, turn out to be less clear cut and critically depend on the relative importance of several channels. In particular, our findings highlight the key role of business dynamism and its implications for productivity in determining the welfare effects of the respective policy measurers. Our results therefore illustrate the importance of considering sector-specific characteristics in the context of competitive-friendly industrial policies.
- Sprache
-
Englisch
- Erschienen in
-
Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2019: 30 Jahre Mauerfall - Demokratie und Marktwirtschaft - Session: Fiscal Policy ; No. E21-V2
- Klassifikation
-
Wirtschaft
Business Taxes and Subsidies including sales and value-added (VAT)
Industrial Policy; Sectoral Planning Methods
Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy: General (includes Measurement and Data)
Fiscal Policy
Market Structure, Firm Strategy, and Market Performance: General
Innovation; Research and Development; Technological Change; Intellectual Property Rights: General
- Thema
-
Industrial policies
Endogenous firm dynamics
Technology utilization
DSGE models
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Röhe, Oke
Stähler, Nikolai
- Ereignis
-
Veröffentlichung
- (wer)
-
ZBW - Leibniz-Informationszentrum Wirtschaft
- (wo)
-
Kiel, Hamburg
- (wann)
-
2019
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Konferenzbeitrag
Beteiligte
- Röhe, Oke
- Stähler, Nikolai
- ZBW - Leibniz-Informationszentrum Wirtschaft
Entstanden
- 2019
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