Rural Telecommunications Subsidies Do Not Help
The common justifications for government subsidies for rural telecommunications are to promote universal service and to promote economic development. While the case for subsidizing many rural telephone services is stronger than for more urban settings, it is still weak and subsidy implementation has likely been corrupted by rent seeking practices. Because of this and because many newer technologies tend to reduce rural disadvantages, a policy of limiting subsidies is likely efficient.
References listed on IDEAS
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"Taxation by Telecommunications Regulation,"
in: Tax Policy and the Economy, Volume 12, pages 29-48
National Bureau of Economic Research, Inc.
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- Eriksson, Ross C & Kaserman, David L & Mayo, John W, 1998. "Targeted and Untargeted Subsidy Schemes: Evidence from Postdivestiture Efforts to Promote Universal Telephone Service," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 477-502, October.
- Jerry Hausman, 1998. "Taxation by Telecommunications Regulation," Books, American Enterprise Institute, number 53052, 7.
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