Cost-Benefit Rules in a Regionalized Disequilibrium Model
Henry Ohlsson ()
Scandinavian Journal of Economics, 1987, vol. 89, issue 2, 165-82
In 1982-83 a mining company in northern Sweden laid off 1,800 employees. The Parliament allotted SEK 309 million for a program of job-creating measures. Evaluation of these measures requires a welfare-theoretic foundation. This analysis focuses on the welfare implications of public production of private goods. These effects depend on which market output is sold and the type of taxes used to balance the public budget. The rules include partial and indirect spill-over effects that can be interpreted in terms of multipliers and marginal propensities to consume. Copyright 1987 by The editors of the Scandinavian Journal of Economics.
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