THE EMPLOYMENT CREATION EFFECTS OF FACTOR SUBSIDIES: SOME ESTIMATES FOR NORTHERN IRELAND MANUFACTURING INDUSTRY, 1955‐1983
利用北爱尔兰制造业的需求函数和CES生产函数参数，模拟了要素补贴对就业、资本和产出的影响，发现资本补贴因行业劳动密集且需求价格弹性低而显著减少就业。
ABSTRACT In this paper, I use estimates of the parameters of an industry demand function and a CES production function for Northern Ireland manufacturing in order to measure the relative impact of factor subsidies on employment, capital, and output. A simulation model is able to differentiate the output and substitution effects of subsidies. The results indicate that since manufacturing industry in the province tends to operate with a labor‐intensive technology and, since its price‐elasticity of demand for output is very low, the employment creating effects of capital subsidies are strongly negative.