Matsuzaki, Daisuke; Ono, Yoshiyasu - 2018
When a government considers a subsidy for an underdeveloped region, it has several options: the subsidies can be for … land, wages, employment, or production. While land subsidy is a lump-sum transfer, the others are meant to promote local … production or worker immigration. Under full employment, replacing the lump-sum subsidy with the other subsidies benefit (harm …