Subsidy | A Political Economy of Access

We are pleased to make available Chapter 4: Subsidy of A Political Economy of Access. It opens:

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?