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Working papers series - Universidad Pablo de Olavide

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c Hs=0.6s=0.85s=1A((1-t)/A)c Lc LFIGURE 1: THE POLICY SPACEhttp://www.upo.es/econ


c HBAc LFIGURE 2a: THE OPTIMAL POLICY IN COUNTRY DEPENDSON THE VALUE OF THE SUBSIDYc Hc LFIGURE 2b: THE OPTIMAL POLICY IN A HIGH AND A LOWINCOME COUNTRYhttp://www.upo.es/econ


120000ch10000080000600004000020000 1 clHigh 1 clLowHighLow50000 60000 70000 80000 90000 100000 clFIGURE 3: ILLUSTRATION OF PROPOSITION 2http://www.upo.es/econ

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