Cross-subsidies and network expansion in developing countries

Authors
Laffont, JJ N'Gbo, A
Citation
Jj. Laffont et A. N'Gbo, Cross-subsidies and network expansion in developing countries, EUR ECON R, 44(4-6), 2000, pp. 797-805
Citations number
4
Categorie Soggetti
Economics
Journal title
EUROPEAN ECONOMIC REVIEW
ISSN journal
00142921 → ACNP
Volume
44
Issue
4-6
Year of publication
2000
Pages
797 - 805
Database
ISI
SICI code
0014-2921(200005)44:4-6<797:CANEID>2.0.ZU;2-7
Abstract
This paper provides a simple model to discuss the financing of network expa nsion (for telecommunications, electricity, water, etc.) in developing coun tries. It shows how inefficient or corrupt tax systems affect the developme nt of networks, and restore partially the relevance of cross-subsidies betw een rich and poor consumers for financing this development. (C) 2000 Elsevi er Science B.V. All rights reserved. JEL classification: O2; H2; L5.