Flat subsidies, technological change and transitional dynamics: a welfare analysis

Authors
Garcia-Castrillo, P Sanso, M
Citation
P. Garcia-castrillo et M. Sanso, Flat subsidies, technological change and transitional dynamics: a welfare analysis, ECON LETT, 69(3), 2000, pp. 393-400
Citations number
4
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
69
Issue
3
Year of publication
2000
Pages
393 - 400
Database
ISI
SICI code
0165-1765(200012)69:3<393:FSTCAT>2.0.ZU;2-8
Abstract
The best policy measures obtained under the assumption that the economy is always in the steady state will be non-optimal in the transition when at le ast one of the market distortions is dynamic. Using Romer's endogenous tech nological change model, we show that one of these measures could even be ha rmful for some parameter combinations. (C) 2000 Elsevier Science S.A. All r ights reserved.