Reply to subsidies, additionality and financial constraints

Article Abstract:

Darryl R. Holden and J. Kim Swales' assertion that the effectiveness of subsidies is limited by various financial constraints is incorrect. Such an observation can only be valid in a homogenous production scenario. Moreover, a recent study reveals that the effectiveness of subsidies increases with the marginal cost of private funds and is higher in companies encountering financial constraints. The finding supports the observation that smaller firms benefit more from subsidies than larger ones.

United Kingdom, Analysis, Economic aspects, Labor policy, Subsidies

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The welfare aspects of spatial pricing policies reconsidered for a monopoly case

Article Abstract:

Companies which incur significant transport costs use a variety of pricing policies to cover those costs. There are two main types, mill pricing and spatial discriminatory pricing, and both have social welfare implications. Research has been done to ascertain which type of pricing policy is the fairest from a social policy viewpoint. The results indicated that discriminatory pricing may prove to be the fairest policy.

Social aspects, Pricing

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