Table 3. Existing research on the rationales for government subsidies.

Contents References
Correction of Market Failure Rectification of Inefficient Resource Allocation by the Private Sector Musgrave and Musgrave (1989)
Internalization of Externalities Social Benefits Not Reflected in Market Prices Pigou (1920)
Provision of Public Goods Addressing Non-Excludability and Non-Rivalry Samuelson (1954)
Equity and Redistribution Social Justice and Balanced Development Stiglitz (2000)
Correction of Information Asymmetry Policy Incentives and Participation Promotion Laffont and Tirole (1993)
Policy Guidance and Stabilization Macro Policy and Industrial Promotion Tools Oates (1999)