the government incentive to impact on entry costs, and how entry subsidies can be used strategically in open economies. We … the monopoly pricing distortion. In the autarky equilibrium these subsidies trigger entry, but they eventually do not lead … to more but to better firms in the market. In the open economy there is another, strategic motive for entry subsidies as …

competitive. We implement an approach that allows for the joint estimation of direct and indirect effects of subsidies on … subsidized and non-subsidized firms. We find that firms that receive subsidies experience a boost for productivity. However, our … where other firms are subsidized. These negative externalities depend on the share of firms that receive subsidies in the …

the government incentive to impact on entry costs, and how entry subsidies can be used strategically in open economies. We … the monopoly pricing distortion. In the autarky equilibrium these subsidies trigger entry, but they eventually do not lead … to more but to better firms in the market. In the open economy there is another, strategic motive for entry subsidies as …