Tiresome subsidies — the nuisance of subsidies distorting international competition

The International Effects of U.S. Farm Subsidies

Using dynamic programming, this paper examines effects of farm subsidies on U.S. exports of corn, cotton, rice, and wheat. The six policy simulations described here explore alternative proposals in the current round of the General Agreement on Tariffs and Trade. The analysis leads to two conclusions. First, abolishing domestic subsidies lowers world prices of these crops. Second, imposing tight...

R&D subsidies under asymmetric Cournot competition

Recycling fuel subsidies as health subsidies.

Competition and Subsidies in the Deregulated U.S. Local Telephone Industry∗

The 1996 Telecommunications Act opened the monopolistic U.S. local telephone industry to new entrants. However, substantial entry costs have prevented some markets from becoming competitive. We study various subsidy policies designed to encourage entry. We estimate a dynamic entry game using data on both potential and actual entrants, allowing for heterogeneous option values of waiting. We find...

Price Structures, Cross-Subsidies, and Competition in Infrastructure

Private Sector Development Department ▪ Finance, Private Sector, and Infrastructure Network Governments often regulate not only the overall level of prices charged by infrastructure firms but also the relationship between prices for different services or customers. Thus, government-controlled telephone monopolies may keep prices low for local calls and charge more for long-distance calls. Power...