Mechanism And Model Of Subsidy Of Urban Railway Transportation Based On Diversification Of Capital Structure

Based on the reality and theory of the urban railway transportation system, the essay firstly discusses the theoretical basis of the subsidies of the urban railway transportation system. Secondly, the essay analyzes the relationship of different participant associated to the subsidies taking the advantage of information economics. And finally, it also discusses two different situations:multiple investors involve in operations and multiple investors do not involve in operations. The collusions of the essay are as follows:(1)If Arrow—Pratt measure of absolute aversion of the company remain the same, the higher of the government's Arrow—Pratt measure of absolute aversion, the lower of the public welfare of the subsidies.(2)Under the same subsidy model, the increase of the government's Arrow—Pratt measure of absolute aversion will definitely lead to the increase of company' incentives.(3)Under the same subsidy model, he increase of the government's Arrow—Pratt measure of absolute aversion will be a KALDOR—HICKS IM-PROVEMENT.(4)The involvement in operation of multiple investors is an improvement to the efficiency of the organization.(5)The increase of useful information will be a Pareto Improvement to the whole organization.