Ch 12 - Infrastructure and development Flashcards
1
Q
What is infrastructure?
A
A broad range of facilities that are needed for the functioning of communities
2
Q
What characteristics of infrastructure warrant government intervention at various levels?
A
Large fixed costs
Complementary in nature
Involve large externalities
Similar to public goods
3
Q
Name 3 forms of gov intervention in infrastructure
A
Monopolise the installation and supply
Publicly fund infrastructure projects but delegate construction and operation to private companies
Gov regulation of privately funded infrastructure building and operation
4
Q
Why is it important to quantify the gains from infrastrcture?
A
To assess their cost effectiveness
