Förderungen im Vergleich: Die inverse Subvention als effizientere Alternative

Dertwinkel-Kalt Markus and Wey Christian

Wirtschaftsdienst, 2025, vol. 105, issue 9, 656-658

Abstract: Subsidies are a key economic policy instrument. This article analyses the effects of three types of subsidies. Ad valorem subsidies, in which the subsidy is granted in proportion to the price of the subsidised good, are particularly widespread. Although these subsidies stimulate demand, they lead to price-driving effects with limited volume expansion in markets with imperfect competition. In such realistic market forms, inverse subsidies, whose amount increases as the market price falls, offer a more efficient expansion of quantities at moderate costs. However, they remain underrepresented due to political and economic inertia and communicative complexity.

JEL-codes: D04 L11 L50 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/wd-2025-0167 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:wirtsc:v:105:y:2025:i:9:p:656-658:n:1014

DOI: 10.2478/wd-2025-0167

Access Statistics for this article

Wirtschaftsdienst is currently edited by Nicole Waidlein

More articles in Wirtschaftsdienst from Sciendo
Bibliographic data for series maintained by Peter Golla ().