El Departamento de Economía de la Universidad de Chile tiene el agrado de invitar a usted al siguiente seminario académico:

Título: The efficiency case for transit subsidies in the presence of a "soft" budget constraint

Autor: Andrés Gómez-Lobo (Universidad de Chile)

Presenta: Andrés Gómez-Lobo (Universidad de Chile)

Abstract: The main contribution of this paper is to discuss the implications of a 'soft' budget constraint on optimal transit fares and subsidies. We find that the effect of productive inefficiencies on optimal fares and subsidy levels depends critically on the way cost reducing effort enters the cost function and on the institutional environment (as measured by the 'tightness' of the budget constraint faced by operators). In particular, recognizing that subsidies may have an adverse effect on productive efficiency does not necessarily imply that transit subsidies should be eliminated. Unsurprisingly, there will be a trade-off between the negative cost efficiency effects of transit subsidies and the welfare enhancing allocative efficiencies related to these subsidies. Under certain circumstances optimal subsidies may be higher when operators face an intermediate budget constraint than when they face a 'tight' budget constraint. We illustrate this last result using a simple numerical model.

El Seminario se realizará el miércoles 09 de octubre de 13:00 a 14:00 hrs, en la Sala P-301 Tercer Piso del edificio Placa de la Facultad de Economía y Negocios de la Universidad de Chile, ubicada en Diagonal Paraguay 257.

Esperando contar con su asistencia, les saluda cordialmente,

Pamela Fuentes O.