Effects of Subsidies on Resource Allocation

  • Geoffrey Denton
  • Seamus O’Cleireacain
  • Sally Ash
Part of the Trade Policy Research Centre book series


The previous chapter not only provided the data illustrating the cross-industry pattern of government aid. It also identified a number of activities subsidized by individual programmes. The present chapter attempts to provide a theoretical framework within which to analyse the effects on resource allocation of the subsidization of these activities. In doing so, it is necessary occasionally to draw upon the empirical results of other studies of individual types of subsidy.


Capital Stock Public Subsidy Investment Incentive Trade Effect Production Subsidy 
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Copyright information

© Trade Policy Research Centre 1975

Authors and Affiliations

  • Geoffrey Denton
    • 1
  • Seamus O’Cleireacain
    • 2
  • Sally Ash
    • 1
  1. 1.University of ReadingUK
  2. 2.State University of New YorkUSA

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