Redistributive expenditure can take the form of direct cash transfers (grants) and/or inkind subsidies. Using diagrams, discuss the merits of these two transfer types in the presence and absence of a positive externality.

Essentials of Economics (MindTap Course List)
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ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section10.3: Private Solutions To Externalities
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Redistributive expenditure can take the form of direct cash transfers (grants) and/or inkind subsidies. Using diagrams, discuss the merits of these two transfer types in the presence and absence of a positive externality.
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