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This paper presents a two-period general equilibrium model that incorporates the firm's learning-by-doing under the green subsidies. I use a dynamic version of the Dixit-Stiglitz monopolistic competition model to analyze

This paper presents a two-period general equilibrium model that incorporates the firm's learning-by-doing under the green subsidies. I use a dynamic version of the Dixit-Stiglitz monopolistic competition model to analyze the impact of the introduction of green subsidies in the presence of pre-existing effluent taxes. I first show that the introduction of green subsidies promotes the demand for green goods, and consumers are better off each period.

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    Date Created
    • 2013
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  • Text
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    • Partial requirement for: M.S., Arizona State University, 2013
      Note type
      thesis
    • Includes bibliographical references (p. 26-27)
      Note type
      bibliography
    • Field of study: Economics

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    by Myunghun Chung

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