Search Results
Working Paper
Entrepreneurship and government subsidies under capital constraints: a general equilibrium analysis
This paper studies the interaction of capital constraints with business formation, growth and destruction, and the policy implications of this interaction. A dynamic general equilibrium model is constructed and shown to be consistent with recent empirical finding on this subject. In the model, agents face uninsurable income risk and costly financial intermediation, and they choose to be either a worker or an entrepreneur. A calibrated version of the model is used to examine two government assistance programs: loan guarantees and grants. The main findings are that both programs can improve ...
Journal Article
Stadiums and convention centers as community loss leaders
Journal Article
An acquired taste for public goodies
State and local government spending has steadily increased across the district, and states have unique spending priorities
Journal Article
Put it on my ... er, his tab
Opinion polls show a big gap between the public's desire for services and its willingness to pay for those services
Journal Article
Excelsior-Henderson: Motorcycle dream fades in bankruptcy
Report
Subsidizing job creation in the Great Recession
We analyze the effects of various labor market policies on job creation, job destruction, and employment. The framework of Mortensen and Pissarides (2003) is used to model the dynamic interaction between firms and workers and to simulate their responses to alternative policies. The equilibrium model is calibrated to capture labor market conditions at the end of 2009, including the unemployment, inflow, and outflow rates by workers of different educational attainment. We consider the equilibrium effects of a hiring subsidy, a payroll tax reduction, and an employment subsidy. While calibrating ...
Journal Article
Shoestring budgets and Third World competition
Journal Article
Crop insurance turning dry fields in to cash crop
Federal programs help farmers buy better protection but at a heavy public cost
Working Paper
The subsidy from state and local tax deductibility: trends, methodological issues, and its value after federal tax reform
Even though the momentum of the "devolution" movement has slowed, federal intergovernmental grants will probably be cut substantially during the next five to ten years. Federal tax reform could further erode federal assistance by eliminating the deduction for state and local personal income and property taxes. This deduction subsidizes the net cost to taxpayers of financing an additional dollar of state and local spending. In the language of economics, deductibility reduces the marginal "tax price" of state and local public goods. This paper clarifies methodological issues in the ...