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-firm bargaining also gives rise to underinvestment. In this framework, it turns out that an investment subsidy dominates an employment … subsidy in terms of welfare. The reason is that investment subsidies are a more efficient instrument to alleviate the …
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investment subsidy dominates an employment subsidy in terms of welfare if there is bargaining over wages and employment on the …
Persistent link: https://www.econbiz.de/10014140660
-firm bargaining also gives rise to underinvestment. In this framework, it turns out that an investment subsidy dominates an employment … subsidy in terms of welfare. The reason is that investment subsidies are a more efficient instrument to alleviate the …
Persistent link: https://www.econbiz.de/10013234374