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dc.contributor.author Davies, Ronald B.
dc.date.accessioned 2010-12-14T14:28:54Z
dc.date.available 2010-12-14T14:28:54Z
dc.date.issued 2010-05
dc.identifier.uri http://hdl.handle.net/10197/2652
dc.description.abstract An increasing number of international agreements require “nondiscrimination” from their participants, i.e. the government of one country cannot treat foreign firms differently from domestic firms. This is at odds with a government’s desire to benefit its own citizens rather than foreign citizens. I show that the use of red tape – a wasteful application process – can achieve de-facto discrimination. Key to this result is firm heterogeneity since, although the red tape cost is constant across firms, only those sufficiently benefiting from an incentive program will find it worth the cost of applying. If the benefits of targeting subsidies outweigh the burden of red tape on domestic firms, red tape will be used. en
dc.description.sponsorship Not applicable en
dc.format.extent 214491 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher University College Dublin. School of Economics en
dc.relation.ispartofseries UCD Centre for Economic Research Working Paper Series en
dc.relation.ispartofseries WP 10 18 en
dc.relation.requires Economists Online Collection en
dc.subject Red tape en
dc.subject Firm heterogeneity en
dc.subject Production subsidies en
dc.subject Discrimination en
dc.subject.classification H2 en
dc.subject.classification F2 en
dc.subject.lcsh Trade regulation en
dc.subject.lcsh Subsidies en
dc.subject.lcsh International business enterprises en
dc.subject.lcsh Barriers to entry (Industrial organization)
dc.title The silver lining of red tape en
dc.type Working Paper en
dc.internal.availability Full text available en
dc.internal.webversions Publisher's version en
dc.internal.webversions http://www.ucd.ie/t4cms/wp10_18.pdf en
dc.status Not peer reviewed en
dc.neeo.contributor Davies|Ronald B.|aut| en


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