Abstract
Swales J. K. (1981) The employment effects of a regional capital subsidy, Reg. Studies 15, 263–273. In this paper, neoclassical models are developed to analyse the impact of a proportionate capital subsidy on the level of employment in a perfectly competitive and monopolistic industry. In these models the level of output, factor inputs, product price and factor prices are determined simultaneously. In both models, the sign on the change in employment depends solely on the elasticity of demand for the product. When the models are used to analyse the introduction of a regional subsidy, there is a strong presumption that the predicted change in employment will be positive.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have