development tool for many local governments. Often local job creation policies focus on increasing capital through grants, low …-interest financing, and other economic development incentives. Theory predicts that capital subsidies induce firm behaviors that limit …-year county panels to test theoretical predictions on county capital expenditure and input mixes as well as industry establishment …

function and estimate these elasticities to shed some light on the substitutability between imports, capital services, and … labor services. The results reveal that capital services and imports are Morishima substitutes, irrespective of whether the … price of capital services or imports changes, and imports and labor services are also Morishima substitutes, irrespective of …