NEGATIVE DEMAND SHOCKS, KNOCK-ON EFFECTS AND EMERGENCY GOVERNMENT BAILOUTS

In this paper we consider emergency government bailouts. We show that it is welfare‐enhancing to bail out failing firms that are facing a sudden negative demand shock and would otherwise go bankrupt, when there are sufficiently large fixed production costs and knock‐on effects (the negative external...

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Veröffentlicht in:	The Manchester school 2013-06, Vol.81 (3), p.243-257
Hauptverfasser:	CAI, DAPENG, LI, JIE
Format:	Artikel
Sprache:	eng
Schlagworte:	Bailouts Bankruptcy Business failures Demand shock Firm theory Government subsidies Production costs Studies Subsidiary Welfare state
Online-Zugang:	Volltext
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