• Journal of Labour Economics
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• v.43 no.2
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• pp.135-159
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• 2020

This paper analyzes and compares the effects of various government subsidies to improve labor productivity. Laborers are differentiated in learning ability, and duopsonists in the labor market sequentially determine the quality levels and wages of employed laborers in a two-stage noncooperative game under perfect information. If a subsidy is given to the advanced firm in quality and productivity of labor, that firm will prefer to intensify wage competition due to strengthening its competitiveness in the labor market, and attempt to lower its quality in order to reduce the degree of differentiation in quality. At that time, the other firm wants to avoid competition because of its weakened competitiveness, and may have an incentive to lower the quality level to expand the differentiation. If the government subsidizes low-quality and low-productivity firm, it is motivated to increase its quality level to reduce differentiation due to the strengthening of competitiveness, and its competitor has an incentive to improve the quality to expand the differentiation. And there is no significant difference in whether payments are made to laborers or firms.

• Korean Journal of Social Welfare Studies
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• v.40 no.3
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• pp.99-124
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• 2009

This study investigates the problems of welfare decentralization reform implemented by Roh Mu-Hyun Administration and examines a policy direction for improving the decentralization. The reform has caused various problems. Local governments have suffered from heavy financial burden. Some social services, devolved into local governments, have not adequately provided as before. In addition, fiscal disparity among localities has increased. To deal with these problems, experts have proposed several plans, such as restoring the devolved programs to national subsidy programs, inventing a new social welfare grant, or introducing block grants. This study suggests that some of the devolved welfare programs should be restored to the national subsidies, since they cannot be maintained properly by local governments. Also, we need to adjust financial responsibilities between the central and local government in the national subsidy programs. Introducing block grant can be one satisfying solution to enhance local autonomy while maintaining the financial responsibility of central government. In some national subsidy programs, the financial contribution by the central government should be increased to alleviate financial burden of local governments.

• Journal of the Korean Regional Science Association
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• v.10 no.2
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• pp.7-16
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• 1994

With the advent of local autonomy in the 1990s, the polemic issue of decentralizing the central government power will undoubtedly come to the fore. The purpose of this study is to reconsider the government functions both at the central and local levels, paritcularly in the fields of urban planning administration. Those policy guidelines administration. Those policy guidelines employed such delegations include : 1) leaving detailed land use regulations to the discretion of local governments; 2) increasing role of local administrations and people regarding development projects; 3) promotion of urban developers as well as public and private partnership; 4) simplifying the procedure related to development applications. In this context, the role of the central government should be redefined; macro-scale policymaking to cope with on-going globalization trends; area-wide coordination among various local bodies ; providing planning standards and information; straining manpower and operation of urban development funds and subsidies.

• KDI Journal of Economic Policy
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• v.39 no.1
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• pp.41-82
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• 2017

This paper studies the risks associated with local finance in Korea by identifying the financial status of each local government, including the financial burdens of PPP projects, and examined governmental future burdens related to PPP projects. We reviewed all fiscal burdens associated with projects, such as, for BTL (Build-Transfer-Lease) types of projects, facility lease and operating expenses, and, for the BTO (Build-Transfer-Operate) types of projects, construction subsidies that are paid at the construction stage, MRG (Minimum Revenue Guarantee) payments and the government's share of payment. Furthermore, we compared the annual expenditures of local governments on PPP projects against their annual budgets and checked if the 2% ceiling rule could be applied.

• Journal of the Korean Statistical Society
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• v.5 no.2
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• pp.143-158
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• 1976

The purpose of this article is, first, to argue that the fertility cannot be reduced rapidly through widerspread diffusion of contraceptive practices which has been the main drive of the national policy in population control, because there involves the inescapable externalites in procreation, second, family sizes tend to be larger because of the financial externalities arising from government subsidies to families with children, and finally, the decreasing relative risk aversion of households with wealth may induce the poor to have large family sizes.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.05a
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• pp.1784-1787
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• 2006

In the risk capital market there are various types of investors competing each other. In the past, venture capital firms depended on government subsidies to stay in business. In order to be survived in today's competitive market, they need to have had the necessary knowledge and organizational resources to build their own competitive advantages. We examine the relationship between organizational characteristics, human resources, and investment strategies of venture capital firms in Korea.

• Journal of Energy Engineering
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• v.1 no.1
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• pp.102-110
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• 1992

The determination of production level of the domestic anthracite coal is an important issue in the national energy strategy. It is also closely related to the energy mix scenarios in the future. The objective of the paper is to discuss and analyze the options of expanding anthracite coal demand in the utility sector. The observed options are including; (1) New pulverized system of the 200 and 500 MW level, (2) Atmospheric Fluidized Bed Combustion (AFBC), and (3) Pressurized Fluidized Bed Combustion (PFBC). Special emphasis is placed on the considerations in estimating the effects on the electric system costs and government subsidies when the options are introduced in the utility sector.

• STI Policy Review
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• v.9 no.1
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• pp.55-76
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• 2018

This study analyzed the effect of the government R&D subsidy program on long-term firm survival. In order to estimate the average treatment effect for the treated group, we used the survival analysis and matching method by constituting a comprehensive dataset of more than 90,000 observations. The analysis results show that the government R&D subsidy has a negative impact on long-term firm survival. In particular, not only the subsidy does not have a statistically significant effect on firm survival in the relatively short-term, the survival probability of the subsidized firms is statistically significantly lower than the non-subsidized firms after six years. These results can be seen as weakening the justification of government R&D support. There may be problems in the subsidy policy itself and the process of selection of subsidy awardees; however, the more fundamental problem is that the subsidy policy is concluded as the one-time event. Admittedly, it would be difficult for the government to precisely manage the subsidized projects over a long term period. However, in the case of a project in which short-term performance is detected, it would be necessary to provide a step-by-step support to strengthen the firm's competitiveness through further support and continuous development of performance. Of course, mid- and long-term evaluations of subsidy support policy should be performed in parallel with such phased support.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.10
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• pp.39-48
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• 2022

This research aims to investigate the application of Keynes's theory in Indonesia, particularly in solving unemployment and poverty problems through government spending, economic growth, and human resource capacity. The basic concepts of the Keynesian theory were used as a method, through which government spending was harnessed toward economic growth in reducing unemployment and poverty rate. The analytical materials used were panel data for the 2017-2021 period in Central Java, Indonesia. The analytical methodology used was a multiple regression experimental design in selecting the best model according to Keynes's theory, especially for overcoming formidable problems. The main results showed that large Government spending program is ineffective in encouraging pro-growth, pro-job, pro-poor, and pro-equity development policy strategies. The causes of this failure include the violation of Keynes' assumptions about rationality and the low quality of education investment, which do not encourage productive and innovative entrepreneurship, as well as self-employment opportunities. As a result, government spending, including subsidies and direct financial assistance, used to implement the macroeconomic monetary, unstructured, and fiscal policy system is insufficient to significantly reduce the enormous difficulties. The main research results confirm that human capital capacity is the key to mitigating and reducing unemployment and poverty.

• Journal of Korean Society of Rural Planning
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• v.14 no.4
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• pp.57-67
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• 2008

The Direct Payment Program for Rural Landscape Conservation (DPPRLC), introduced by the Korean government, currently offers subsidies to rural villages to encourage the growing of flower crops or wild flowers instead of common grain. However, in many of these villages, major landscape elements like walls and roofs of houses are built with cheap, urban materials, and kept in poor condition. This is a poor reflection of the DPPRLC goal to improve the aesthetic of korean rural landscape. This study surveyed and analyzed traditional style walls and roofs in ten selected villages taking part in the DPPRLC program. Villagers were interviewed for a proposed direct payment program for building and maintaining traditional walls and roofs. Major findings are: First, more than 86% of residents are willing to build and maintain traditional walls if subsidies are given. They would like to be reimbursed 75% to 100% of construction and maintenance costs. Second, about 64% of residents would be willing to build and maintain traditional roofs with the subsidies. They also would like to receive 75% to 100% of construction and maintenance costs. The policy implication of this study is that extending the DPPRLC program to include walls and roofs in rural villages will make rural landscape more attractive.