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:
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.
spatial price equilibrium
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:

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