ABSTRACT

The objective of this chapter is to identify the rules and methods for shadow wage rates in multi-level government. The analysis is in two sections. The first summarizes the current state-of-the-art of the theory of shadow wage rates. Here, in particular, the focus will be on definitions, key elements, rules, and methods concerned with shadow wage rates. The second section will identify the rules and methods for determining the shadow wage rates in multi-level government analysis examining, first, the EU Cohesion Policy, and then extending the results in the US Federal Investment Policies.