Arbeitspapier

Welfare effects of a transport subsidy in a spatial price equilibrium

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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.

Sprache
Englisch

Erschienen in
Series: Diskussionsbeiträge aus dem Institut für Wirtschaft und Verkehr ; No. 3/98

Klassifikation
Wirtschaft
Thema
transport
externality
spatial price equilibrium
welfare.

Ereignis
Geistige Schöpfung
(wer)
Bröcker, Johannes
Ereignis
Veröffentlichung
(wer)
Technische Universität Dresden, Fakultät Verkehrswissenschaften
(wo)
Dresden
(wann)
1998

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Bröcker, Johannes
  • Technische Universität Dresden, Fakultät Verkehrswissenschaften

Entstanden

  • 1998

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