Endogenous financing of the universal service
Ramiro Losada and
UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía
We address the question of endogenous financing of the Universal Service Obligations and we compare it with the exogenous financing. A fund is created and fed through a tax firms pay. We show that the way these funds are implemented by the current regulatory regimes at work goes against the social welfare. We propose a new way of implementing the fund that improves welfare. Moreover, we challenge the proportionality payment principle as it leads to lower welfare.
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Persistent link: https://EconPapers.repec.org/RePEc:cte:werepe:we044116
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