Kammerer, Hannes - 2013 - This version: March 1, 2013
when receiving subsidies and lobbying is costly. Due to firm heterogeneity, a within-industry conflict between receiving …Recent empirical evidence shows that the few firms that receive subsidies are large, and that large firms take a … prominent role in shaping public policy by lobbying. In this paper, I present a theoretical framework that accounts for these …