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Privatization, Efficiency Gap, and Subsidization with Excess Taxation Burden
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Wang F.S. Leonard
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Chen Tai-Liang
… We show that different degree of efficiency gain sharply changes the comparisons of optimal subsidy, total outputs and social welfare between mixed and private duopoly. … What is more, for an imposition of an optimal subsidy, welfare may increase, decrease, or remain unchanged with privatization, which depends on the level of the cost efficiency gap and the taxation burden. …
Hitotsubashi journal of economics 52(1), 55-68, 2011-06
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