Energy subsidy and manufacturing firm performance
Ali Hojjati
Economics PhD Student at Sharif University
Advisors: Dr.Mohammad Hossein Rahmati
Dr.Seyed Ali Madanizadeh
This paper measures the importance of dispersion caused by energy price subsidy(level and dispersion) on manufacturing efficiency and how could it alter the welfare of households. We do this by developing a general equilibrium model of multi-product firms and analyzes their behaviour by making distortions in energy prices. The production function is modelled as a combination of how firms substitute energy and capital and labour and firms could choose a more efficient capital to energy ratio at some prices. So higher productive and bigger firms use this to reform their energy technology. As we expect from the literature, distortion in the price of the input could cause misallocation both in firms extensive, aggregate total productivity by making the lowest-productivity firms to exit, and intensive margin, output per capita. Moreover, and according to the format of the model, distortion in prices causes production in a lower technology of production, especially for big plants.
ارائه کننده: علی حجتی
زمان: چهارشنبه ۲۶ خرداد ۱۴۰۰ ساعت ۱۶:۳۰ تا ۱۸
آدرس جلسه: https://vclass.ecourse.sharif.edu/ch/econ-talks