As public intervention is a pervasive influence on food prices, this paper asks whether and how the inefficiency of state institutions matters to food prices. In the context of the wheat subsidy scheme in India, the paper models the implications of quality differences between public and private grain supply. As both are procured at similar prices, the lower quality of public grain marks the ine...

The existing theoretical literature provides little justi…cation for a corporate debt subsidy. We illustrate the welfare bene…t of this subsidy and study how the social costs and bene…ts change with the duration of industry distress. In our model, two …rms engage in socially wasteful competition for survival in a declining industry. Firms di¤er on two dimensions: exogenous productivity and endo...

Weconsider how the government should set the fine for copying, tax on copyingmedium, and subsidy on legitimate purchases, whereas a monopoly publisher sets price and spending on detection. There are two segments of potential software users—ethical users who will not copy, and unethical users who would copy if the benefit outweighs the cost. In deciding on policy, the government must consider ho...

Persistently high youth unemployment is one of the most pressing problems in South Africa. The South African government has proposed an employer wage subsidy to address the issue. We prospectively analyze such a policy. Recognizing that a credible estimate of the policy’s impact requires a model of the labor market that itself generates high unemployment in equilibrium, we estimate a structural...

Environmental policies with output-based refunding of the revenues effectively combine a tax on emissions with a subsidy to output. Three similar forms exist: tradable performance standards, an emissions tax with rebates, and tradable permits with output-based allocation. Two arguments for including an output subsidy are imperfect competition, in which an environmental regulation alone could ex...

production subsidies, as a part of the strategy of economic growth of the agricultural sector, are of great importance around the world. subsidizing production inputs, particularly energy input, is another way of directing subsidy to the agricultural sector. in this research, production function of the agricultural sector was estimated using econometric methods and time series data. after calcu...

Many governments use price and tax subsidization to meet social protection objectives in lieu of, or in addition to, direct income transfers. Such subsidies may be perceived as influencing behavior to further other socially desirable policies. For example, the price response induced by lowering the price of schooling or key food items will both lower the cost of living for the beneficiaries and...

We argue that the pervasive practice of evaluating portfolio managers relative to a benchmark has real effects. Benchmarking generates additional, inelastic demand for assets inside benchmark. This leads “benchmark inclusion subsidy:” firm values an investment project more than one outside. The same wedge arises valuing M&A, spinoffs, and IPOs. overturns proposition investment’s value is indepe...

The pandemic has become a public health crisis as well an economic in the United States, actually one of most substantial national crises since Great Depression. This research analyzes impacts “Build Back Better” Act on US economy and discusses optimization strategy policy. utilizes secondary resources, mainly past news articles, to analyze policy proposes potential strategies that government c...