This article describes a new approach to determining the optimal amount of state financial support provided to business entities. It is shown that there are three available methods to support economic agents. The most cost-effective option is subsidizing business entities to expand their current...

We formalize and estimate the dynamic marginal efficiency cost of redistribution (MECR) in the spirit of Okun’s “leaky bucket” to compare the MECR of an income-contingent childcare subsidy program and of the income-contingent tax and transfer schedule. We set up a dynamic structural model...

While there is increasing consensus in the academic debate on the regressive nature of energy subsidies and the necessity to reduce them, this is much less so for food subsidy reforms – not least because of the positive impact of food subsidies for food security. They make food affordable even...