EconStor >
Technische Universität Dresden >
Institut für Wirtschaft und Verkehr, Technische Universität Dresden >
Diskussionsbeiträge aus dem Institut für Wirtschaft und Verkehr, TU Dresden >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/48506
  
Title:Welfare effects of a transport subsidy in a spatial price equilibrium PDF Logo
Authors:Bröcker, Johannes
Issue Date:1998
Series/Report no.:Diskussionsbeiträge aus dem Institut für Wirtschaft und Verkehr 3/98
Abstract:The paper shows that in a spatial price equilibrium under monopolisitc competition welfare can be increased by subsidising transport. Therefore transport can be said to exert a positive (pecuniary) externality. This is demonstrated by introducing a subsidy into a partial spatial price equilibrium of the Hotelling-Smithies type in one-dimensional space. Two varieties of demand are analysed, linear and negative exponential. The welfare effect of a transport subsidy is shown to be decomposable into three effects, the expansion effect, the competition effect and the market size effect. Numerical results and decompositions are presented.
Subjects:transport
externality
spatial price equilibrium
welfare.
Document Type:Working Paper
Appears in Collections:Diskussionsbeiträge aus dem Institut für Wirtschaft und Verkehr, TU Dresden

Files in This Item:
File Description SizeFormat
253525314.pdf294.13 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/48506

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.