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Type: Journal Articles Authors: Kim Swales ISSN: Print: 0143-5671 Online: 1475-5890
Published in: Fiscal Studies, Vol. 18, No. 1, February 1997
Volume, issue, pages: Vol. 18, No. 1, pp. 73-85
JEL classification: H20
The 'Green Book' and the recent EGRUP report support exchequer cost per job as a key input in the ex-ante appraisal of individual applications for Regional Selective Assistance (RSA) and the ex-post evaluation of the RSA scheme as a whole. In this paper, following a recommendation in the House of Commons Trade and Industry Committee's report on regional policy, the merits of an alternative, explicitly cost-benefit, framework are outlined. This approach incorporates the administration and compliance costs of the subsidy, costs at present ignored in RSA evaluation studies. An optimal ex-ante appraisal rule is developed. This takes the form of a cost-per-job ceiling, and a representative value is calculated for this figure. Search |

