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Author: | Laffont, J-J. N'Gbo, A. |
Title: | Cross-subsidies and network expansion in developing countries |
Journal: | European Economic Review
2000 : MAY, VOL. 44:4-6, p. 797-805 |
Index terms: | Financing Taxation Efficiency Infrastructures Developing countries Subsidies Models |
Language: | eng |
Abstract: | This paper provides a simple model to discuss the financing of network expansion (for telecommunications, electricity, water, etc.) in developing countries. It shows how inefficient or corrupt tax systems affect the development of networks, and restore partially the relevance of cross-subsidies between rich and poor consumers for financing this development. |
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