Mild Government Failure

作者：Shang‐Jin Wei, Jianhuan Xu, Ge Yin, Xiaobo Zhang · 发表于：National Bureau of Economic Research · 年份：2023 · DOI：10.3386/w31178 · 被引用次数：22 · 研究领域：Political and Economic history of UK and US、Politics and Conflicts in Afghanistan, Pakistan, and Middle East

A relatively mild form of government failure -for example, bureaucrats can count but do not differentiate quality -can significantly affect the efficacy of industrial policy.We investigate this idea in the context of China's largest pro-innovation industrial policy using a structural model.We find that the return to the subsidy program is -19.7\%(but would be 7.8\% if the mild government failure can be removed).Furthermore, the welfare loss is exacerbated by patent trade.