Year: 1990
Author: Rauscher, Michael
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 110 (1990), Iss. 1 : pp. 83–91
Abstract
If high fixed costs prevent a domestic firm from entering a foreign market, the government of the home country can induce entry by providing export subsidies. This paper compares two types of subsidies. It is shown that a lump-sum subsidy is superior to output-related subsidies since the latter bias the firm’s decision about its production.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.110.1.83
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 110 (1990), Iss. 1 : pp. 83–91
Published online: 1990-01
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 9
Author Details
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