A voluntary subsidy scheme for the accounting rate system in internationaltelecommunications industries

Citation
K. Domon et K. Kiyono, A voluntary subsidy scheme for the accounting rate system in internationaltelecommunications industries, J REGUL EC, 16(2), 1999, pp. 151-165
Citations number
14
Categorie Soggetti
Economics
Journal title
JOURNAL OF REGULATORY ECONOMICS
ISSN journal
0922680X → ACNP
Volume
16
Issue
2
Year of publication
1999
Pages
151 - 165
Database
ISI
SICI code
0922-680X(199909)16:2<151:AVSSFT>2.0.ZU;2-G
Abstract
This paper proposes a new scheme complementing the current accounting rate system for international telecommunications industries. From an economic st andpoint, the current accounting rate system results in high service charge s as well as inefficient production. This is a source of contention between developed countries and less developed countries. Although there have been discussions concerning the disadvantages of the accounting rate system, a concrete and workable alternative has not yet been proposed. In this paper, we shall propose a method, taking into account the utilization of a subsid y from a developed country to a less developed country to reduce the accoun ting rate in international telecommunications, and this scheme brings a sec ond-best solution.