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Modeling Economic Inefficiency Caused by Public Transit Subsidies
Modeling Economic Inefficiency Caused by Public Transit Subsidies Author:K. Obeng, A.H.M. Golam Azam, R. Sakano An empirical investigation into the distorting effects of subsidies on firm efficiency, this book puts together and applies recent developments in econometric methods to explore efficiency consequences of government subsidy on firm operations. Within the neoclassical framework, the book provides analytical solutions capturing the effect of subsi... more »dy on cost, output, input demand, and allocative distortions when the firm receives operating and capital subsidies. By doing so, the book avoids the ad-hoc models that have been used to estimate the effect of subsidy on firm efficiency in the transit industry.« less