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Subsidy | A Political Economy of Access
A Political Economy of Access: Infrastructure, Networks, Cities, and Institutions by David M. Levinson and David A. King
Should government subsidize transport? If government subsidizes transport, should it subsidize producers or consumers? If a government gave money to consumers, they could spend it on what they want, paying for a service, which if it covers operating costs, could lead to more investment. If it gave money directly to producers, they spend it on more supply. Which leads to a better outcome?