Year: 1995
Type: article
Abstract: The strategic effects of subsidies on output and subsidies on investment differ substantially in dynamic models where a government's commitment ability is limited. Output subsidies remain effective even as the period of commitment vanishes. but investment subsidies may become completely ineffective. This difference has been obscured because most existing models of strategic trade policy are static.
Source: International Economic Review
DOI: 10.2307/2527264
Authors: Larry S. Karp, Jeffrey M. Perloff
Institution: University of California, Berkeley
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2076058317