ISSN:
1467-9787
Source:
Blackwell Publishing Journal Backfiles 1879-2005
Topics:
Geography
,
Economics
Notes:
. This paper comprises a detailed investigation of the properties of the analytical model introduced in Wren (1994) to evaluate the effect of industrial subsidies on firm employment. We deal specifically with the link between additionality and whether the firm is finance constrained, adding a more flexible formulation for the financial constraint than the two given in Wren. We use the model to question Wren's view that additionality will be greatest in financially constrained firms. We argue that financial constraints potentially restrict leverage and therefore in important, relevant circumstances, limit the effectiveness of subsidies.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1111/j.1467-9787.1996.tb01271.x
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