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AAK - Acta academica karviniensia

číslo 2016/3
MULTIPLIER AND CROWDING-OUT EFFECTS OF STATE AID ON PUBLIC BUDGETS
[Multiplikační a vytěsňovací efekty státní podpory podniků ve vztahu k veřejným rozpočtům]
ISSN:
1212-415X (Print)
2533-7610 (Online)
Year [Rok]:
2016
Volume [Ročník]:
XVI
Issue [Číslo]:
3
Authors [Autoři]:
Pavla Brůžková
Abstract [Abstrakt]:
The aim of this paper is to analyze, specify and isolate components that form the anticipated multiplier and crowding-out effects of state aid and to discuss its impacts on the public budgets. The author shows that some qualitative and hardly measurable aspects should be included in the multiplier effect. At the same time, various present crowding-out effects partially offset the expected positive results. Several key aspects of state aid are identified to influence the balance of public budgets. First, the distortion of prices of the production factors lead to adjusted tax and social security payments. Second, long-term changes of potential product caused by the provided state aid may create conditions for enhanced economic activity. Last but not least, administration costs connected to state aid should be carefully measured and evaluated.
Keywords [Klíčová slova]:
crowding-out effect, market failure, multiplier effect, public budgets, state aid
JEL classification [JEL klasifikace]:
H21, H25
Page range [Rozpětí stran]:
5 - 15
Full version [Plná verze]: