developing countries see insufficient investment in projects that would reallocate labor towards better jobs. The concept of JLEs … to (a) estimate the value of the externality and (b) discover the amount of subsidy needed to trigger the private … investment. This paper shows that the optimal way to allocate subsidies to offset JLEs is through a competitive bidding process …

developing countries see insufficient investment in projects that would reallocate labor towards better jobs. The concept of JLEs … to (a) estimate the value of the externality and (b) discover the amount of subsidy needed to trigger the private … investment. This paper shows that the optimal way to allocate subsidies to offset JLEs is through a competitive bidding process …

problem of finding optimal tax and subsidy schemes in a model in which growth is endogenously sustained by risky innovation …

are with a high probability expected to be only transitory and not permanent, a relatively small employment subsidy will …. -- recession ; employment ; sunk firing costs ; uncertainty ; employment subsidy …