WHY INDUSTRIAL-POLICIES FAIL - LIMITED COMMITMENT

Authors
KARP LS PERLOFF JM
Citation
Ls. Karp et Jm. Perloff, WHY INDUSTRIAL-POLICIES FAIL - LIMITED COMMITMENT, International economic review, 36(4), 1995, pp. 887-905
Citations number
35
Categorie Soggetti
Economics
Journal title
International economic review → ACNP
ISSN journal
00206598
Volume
36
Issue
4
Year of publication
1995
Pages
887 - 905
Database
ISI
SICI code
0020-6598(1995)36:4<887:WIF-LC>2.0.ZU;2-#
Abstract
The strategic effects of subsidies on output and subsidies on investme nt differ substantially in dynamic models where a government's commitm ent ability is limited. Output subsidies remain effective even as the period of commitment vanishes, but investment subsidies may become com pletely ineffective. This difference has been obscured because most ex isting models of strategic trade policy are static.