Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/17698 
Authors: 
Year of Publication: 
2000
Series/Report no.: 
Kiel Working Paper No. 998
Publisher: 
Kiel Institute of World Economics (IfW), Kiel
Abstract: 
Economic policy interventions of a scale as effected in eastern Germany can be expected to have a significant impact on the economy, which may be in accordance with the objectives of the policy measures or manifest itself in distortions of several kinds. This paper analyzes the structural effects of investment subsidization as one of the core policy instruments by means of an error-correction model of factor demand and output. It intends to find out whether investment subsidization contributes to creating competitive economic structures, employment and growth or whether it just fosters an exaggerated capital intensity.
Subjects: 
Subsidization
transition
factor demand
substitution
panel estimation
JEL: 
C51
C33
H20
E24
E23
E22
Document Type: 
Working Paper

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