Investment Scale as a Signal in Industrial Assistance Schemes with Employment Objectives
Bibliographic Data
| ID | 9725486 |
|---|---|
| Authors | Colin Wren (0000-0001-5117-9379, Newcastle University, corresponding author) |
| Year | 2003 |
| Volume | 70 |
| Issue | 278 |
| Pages | 331-352 |
| Publication date | 2003-05-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/1468-0335.00327 |
| OpenAlex | W2007455300 |
| Language | EN |
| Citations received | 1 |
| References cited | 12 |
The paper examines the implications of asymmetric information for the existence and efficiency of automatic industrial assistance schemes with employment objectives, based on UK regional policy experience. Firms differ in productivities and factor intensities, about which the government is uninformed. The more capital‐intensive firms generate few jobs but implement larger project scales, and the use of this signal for the design of efficient assistance contracts is analysed. The fixed‐rate investment grant used in UK regional policy is found to be poor performing, and is welfare‐dominated by contracts in the grant amount. Assistance contracts specifying both the grant amount and rate may be preferred
Business · Capital (architecture) · Economics · Government (linguistics) · Industrial organization · Investment (military) · Labour economics · Market economy · Scale (ratio) · Welfare · Economic Policies and Impacts · Fiscal Policy and Economic Growth · Labor market dynamics and wage inequality
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,14 |
| Citation span | 2019 - 2019 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |