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Author Question: If it is regarded as socially desirable, for reasons of equity, to provide loss-making rural bus ... (Read 71 times)

ericka1

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If it is regarded as socially desirable, for reasons of equity, to provide loss-making rural bus services, what is the least distortionary solution to this problem?
◦ Subsidise the rural services from increased taxes on the motorist
◦ Raise the fares on the urban bus services to cover the losses of the rural services, so as to retain the same overall level of profit as before
◦ Subsidise the rural services from increased local taxes in rural areas
◦ Subsidise the rural services from increased income tax


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Marked as best answer by ericka1 on May 25, 2020

Kedrick2014

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ericka1

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Reply 2 on: May 25, 2020
Great answer, keep it coming :)


31809pancho

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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