, when a Pigouvian tax on conventional fuels such as crude is in place, the optimal biofuel subsidy is zero. When the tax on … crude is not available as a policy option, however, a second-best biofuel subsidy (or tax) is optimal. In the large …-country case, the optimal tax on crude departs from its standard Pigouvian level and a biofuel subsidy is optimal. A biofuel …

in many place based policies. The optimal hiring subsidy is city specific in the sense that it depends upon the local …

firms where government subsidizes entry of domestic entrepreneurs. Under autarky the entry subsidy indirectly corrects for …

to (a) estimate the value of the externality and (b) discover the amount of subsidy needed to trigger the private … which selects projects based on the estimated amount of JLEs per dollar of subsidy. The bidding process provides an … incentive to investors to reveal the subsidy needed for a project to become privately viable. We show that the proposed approach …

in East Germany after reunification. We show that a 1-percentage-point decrease in the subsidy rate leads to a 1 …