State Aid and Competition: Application of a Social Welfare Criterion to State Aid

Buiren, K. van; Veld, Daan in ‘t; Voort, Janneke van der

doi:10.1007/s10842-018-0290-7

Cited by 3 publications

(1 citation statement)

References 12 publications

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“…Also, when it comes to subsidies for environmental protection, R&D or SMEs, the seemingly clear outcome of a welfare assessment can change when the opportunity cost of taxation is accounted for. Van Buiren et al (2019) compare the potential advantages of aid to the distortionary cost of taxation. The aid is more likely to be welfare enhancing in markets with either low competitiveness or low marginal costs.…”

Section: The Literaturementioning

confidence: 99%

Welfare effects of variable and fixed cost subsidies in profit, non‐profit and mixed markets

Jegers,

Buts,

Van Puyvelde

2024

Manage Decis Econ

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Whereas various support mechanisms are in place to correct market failures, knowledge on their welfare effects is still incomplete. This paper, applying a Bertrand approach, studies and compares the effects of variable and fixed cost subsidies on consumer surplus, producer surplus, total surplus and total surplus net of distorting tax effects (‘overall surplus’) in three different market settings: a for‐profit duopoly, a duopoly with two non‐profit organisations and a mixed duopoly, the duopolists in each case supplying mutually exclusive goods or services. In a for‐profit duopoly, more variable cost subsidies lead to an increase of both consumer and producer surpluses, where the latter is impacted most. The higher the level of demand interaction between the two products, the higher the welfare impact. In the non‐profit setting, we establish that the effects of changing fixed cost subsidies on the fiscal cost are more substantial than in the for‐profit duopoly. Subsidies in mixed competition also generate an impact on both producer and consumer surpluses. The effects on overall surplus are shown to depend in complex ways on the level of demand interaction between the products, the shadow cost of taxation and the firms' cost levels.

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Section: The Literaturementioning

confidence: 99%

Welfare effects of variable and fixed cost subsidies in profit, non‐profit and mixed markets

Jegers,

Buts,

Van Puyvelde

2024

Manage Decis Econ

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The politics of State aid in the European Union: explaining variation in aid allocation among Member States

Schito

2020

J. Pub. Pol.

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Despite widespread acknowledgement of the dangers of selective subsidisation, government support to business remains common practice. Looking at State aid allocations in the European Union, the article explores why some countries grant more aid than others. Scholarship has failed to address this issue in a comprehensive manner, focusing either on the responsiveness of governments to voters’ preferences or on the use of subsidies as a way to ensure the political survival of the incumbent. Using the lens of distributive politics, this article proposes a more comprehensive account of State aid politics that joins these two perspectives. By means of time-series cross-section regression analysis, it tests how aid allocation depends on the attainment of policy goals (namely correction of market failures), electoral pragmatism and responsibility towards international commitments. The results show that politicians are indeed electorally pragmatic, but not necessarily responsive, due to institutional constraints and international commitments.

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Building Blocks of the Industry and Strategizing

Aboutalebi

2021

Advanced Perspectives on Global Industry Transitions and Business Opportunities

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Industry features are considered by Porter, Schmalensee, and many other scholars as the determinants of effective strategy formulation and implementation. While industries are widely different from each other, some common features shape all existing and future industries. This chapter aims to identify these common building blocks of industries and their possible effects on strategizing for the future in a fast transitioning business world. The chapter employs a systematic literature review from the top related journals with at least one of the nine keywords about the industry. The chapter reviews 47 factors or characteristics that form every industry. These industry features are grouped into ten sets of elements, which shapes the ten forces framework, reflecting the interaction among building-blocks of the industry with each other and with strategy implementation practice inside an organization. The chapter concludes by proposing the 'macro-environment, industry, and organization' (MIO) model, which could be utilized by integrating three levels of analyses.

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State Aid and Competition: Application of a Social Welfare Criterion to State Aid

Cited by 3 publications

References 12 publications

Welfare effects of variable and fixed cost subsidies in profit, non‐profit and mixed markets

Welfare effects of variable and fixed cost subsidies in profit, non‐profit and mixed markets

The politics of State aid in the European Union: explaining variation in aid allocation among Member States

Building Blocks of the Industry and Strategizing

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