Uneven recessions and optimal firm subsidies☆

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dc.contributor.authorMachado, Caio
dc.date.accessioned2025-01-20T16:05:30Z
dc.date.available2025-01-20T16:05:30Z
dc.date.issued2024
dc.description.abstractHow should policymakers distribute firm subsidies when supply shocks hit some firms and spill over to others through demand externalities? I propose a model to answer that question. The optimal policy depends on the severity of the supply shock and the degree of substitution across goods. If shocks are not too large or widespread, it is optimal to subsidize only firms not hit by supply shocks. For larger and more widespread shocks, the results depend on the elasticity of substitution: If complementarities across the varieties produced by firms are high, firms facing supply shocks should be prioritized, and the opposite is true if complementarities are low.
dc.description.funderANID/Conicyt, Chile through grant Fondecyt Regular
dc.fuente.origenWOS
dc.identifier.doi10.1016/j.jpubeco.2024.105250
dc.identifier.issn0047-2727
dc.identifier.urihttps://doi.org/10.1016/j.jpubeco.2024.105250
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/89902
dc.identifier.wosidWOS:001341114500001
dc.language.isoen
dc.revistaJournal of public economics
dc.rightsacceso restringido
dc.subjectFirm subsidies
dc.subjectDemand externalities
dc.subjectUneven shocks
dc.titleUneven recessions and optimal firm subsidies☆
dc.typeartículo
dc.volumen239
sipa.indexWOS
sipa.trazabilidadWOS;2025-01-12
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