OPTIMAL OUTPUT OF TRANSPORT IN AN IMPERFECT ECONOMIC ENVIRONMENT

IN A PERFECT ECONOMIC ENVIRONMENT PRODUCTION IS NOT EXCESSIVE UNLESS PRICE IS LOWER THAN MARGINAL COST. IN ACTUAL CONDITIONS, HOWEVER, SOME BRANCHES OF TRANSPORT TEND TO PRODUCE TOO MUCH. BY ALLOWING FOR EXTERNAL EFFECTS AND IMPERFECT COMPETITION THIS PAPER ESTABLISHES A LINK BETWEEN WELFARE THEORY AND THE DEBATE ON LICENSING IN TRANSPORT. THIS ANALYSIS SHOWS THAT A DISTINCTION MUST BE MADE BETWEEN RESTRICTION APPLYING TO THE TRANSPORT INDUSTRY AS A WHOLE AND PARTIAL RESTRICTIONS APPLYING TO SECTIONS OF IT. THE AUTHOR CONCLUDES THAT RESTRICTION SHOULD BE BY TAXATION RATHER THAN BY LICENSING. /DOT/

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  • Corporate Authors:

    London School of Economics and Political Science

    Houghton Street, Aldwych
    London WC2A 2AE,   England 
  • Authors:
    • Blauwens, G
  • Publication Date: 1972-9

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Filing Info

  • Accession Number: 00202272
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Feb 19 1973 12:00AM