Authors : Apiribo J. Iyalla
Abstract: This study provides a simple theoretical framework with which to analyze the effects of Nigeria's petrol subsidy on welfare. We are able to show how a subsidy can improve societal welfare but minor changes to assumptions can negate the results. In particular, rises in crude oil prices can make the optimal subsidy negative.
Apiribo J. Iyalla , 2018. A Theoretical Framework for the Analysis of Nigeria's Petrol Subsidy (Part 1). Journal of Economics Theory, 12: 25-27.