One of the main aims of telecommunication subsidies in developing countries is to extend the information and communication services to the information “have nots” through subsidized communication services. However, subsidies may have an impact on network resource utilization, quality of service and the amount of revenue generated. For example, subsidies may lead to low Quality of Service (QoS) ...

This work deals with subsidy transfer from a manufacturer to a retailer through the distributor in cooperative advertising. While the retailer engages in local advertising, the manufacturer indirectly participates in retail advertising using advertising subsidy which is given to the distributor, who in turn transfers it to the retailer. The manufacturer is the Stackelberg game leader; the distr...

To prevent further increases in energy consumption, the government of Iran commenced energy subsidy reform in 2010. This paper investigates the fuel conservation effects of the reform in Iran using a homothetic translog cost function that provides estimates of the own- and cross-price elasticities of fuel demands. The percentage reduction in fuel demands is estimated using the likely effect of ...

A model of the public transport company in Oslo is used to the design a system of price regulations and subsidies. The objective is to provide incentives for optimum provision of public transport services both for peak and off-peak demand. Optimum is defined in terms of fares, level of service and average capacity per revenue kilometre. The cost of public funds and the fact that car traffic is ...

The increasing death toll from drug-resistant falciparum malaria is cause for international concern. In 2002, the US Agency for International Development commissioned the Institute of Medicine (IOM) to recommend global actions to ensure the broadest possible access to new, effective antimalarial treatments. In a report issued in 2004, the IOM Committee on Economics of Antimalarial Drugs recomme...

In this paper, we study the effect of insulating and non-insulating cost allocations on internal trade in a model of incomplete information. From the perspective of firm-wide profit, the allocation scheme that results in the least amount of rationing (forgone profitable trade) is the optimal one. If one thinks of internal trade as a form of cooperation, one might expect non-insulating allocatio...

We assess different policies for reducing carbon dioxide emissions and promoting the innovation and diffusion of renewable energy. We evaluate the relative performance of policies according to incentives provided for emissions reduction, efficiency, and other outcomes. We also assess how the nature of technological progress—whether it occurs through learning by doing or R&D investment, and the ...

A natural experiment, unintentionally conducted by the price subsidy program Lifeline Assistance, underpins our innovative strategy to estimate consumer demand for communications services. Using a national household panel containing demographic and billing information, we estimate own and cross elasticities of demand for fixed and mobile services and find moderate substitution between the two. ...

This paper develops an empirical strategy to estimate whether subsidies to private medical insurance are self-financing in countries where public and private insurance coexist and the latter covers the same treatments as the former. We construct a simulation routine based on a micro-econometric discrete choice model that allows us to evaluate the impact of premium changes on the utilization of ...