Sorting Out State Subsidies

ASOG Working Paper 16-006

13 Pages Posted: 22 Sep 2016

See all articles by Ronald U. Mendoza

Ronald U. Mendoza

Ateneo De Manila University - Ateneo School of Government

Date Written: September 21, 2016


Public sector subsidies (e.g. direct public financing of certain activities or sectors in the economy) are among the key interventions to accomplish public policy goals, including boosting social safety nets for vulnerable groups, empowering different sectors to become much more resilient to climatic shocks and competition, and enhancing the country’s agricultural development and industrialization prospects. The effectiveness of subsidies depend critically, not just on where they are deployed, but also how they are applied. Two sets of support programs — the Pantawid Pamilyang Pilipino Program (4Ps) for poor mothers and children and the various agricultural support programs and subsidies — offer useful insights in this regard. This paper briefly reviews the evidence and lessons from these subsidy programs.

Keywords: subsidies, CCT, agricultural support, corruption, targeting

JEL Classification: H23, I32, O14

Suggested Citation

Mendoza, Ronald U., Sorting Out State Subsidies (September 21, 2016). ASOG Working Paper 16-006. Available at SSRN: or

Ronald U. Mendoza (Contact Author)

Ateneo De Manila University - Ateneo School of Government ( email )

Katipunan Road
Loyola Heights
Quezon City, 1108

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