Economic Development Assistance to Professional and Technical Services
A computable general equilibrium model is used to compare the economic impact of subsidies between professional and technical services, high-technology manufacturing and traded services. The results suggest that the largest increase in aggregate real income is a factor tax deduction on capital to high -technology manufacturing. A factor tax deduction for the purchase of labor within professional and technical services industries increases aggregate real income in comparison to the same subsidy awarded to high-technology manufacturing or traded services. However, subsidies to either high-technology manufacturing or traded services result in increased income inequality. Only a subsidy to traded services decreases income inequality.
Year of publication: |
2002
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Authors: | Hirasuna, Donald P. |
Published in: |
Journal of Regional Analysis and Policy. - Mid-Continent Regional Science Association - MCRSA. - Vol. 32.2002, 2
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Publisher: |
Mid-Continent Regional Science Association - MCRSA |
Keywords: | Research and Development/Tech Change/Emerging Technologies |
Saved in:
freely available
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