[The policy of subsidies: its positive and negative aspects]
1999
Kavale, L. (University of Latvia, Riga (Latvia). Inst. of Finance)
A theoretical analysis of subsidies is performed and their positive and negative practical impacts on the government's expenditure policy are discussed. The influence of direct and indirect subsidies on the market is analysed. For a rational use of subsidies some recommendations to the responsible politicians are given. It is emphasized that indirect subsidies should be used as the main instrument in the protection of domestic producers.
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