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A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut. In economic theory, subsidies can be used to offset market failures and externalities to achieve greater economic efficiency.

In the most general terms, a subsidy can be. defined as any government assistance that (i) allows consumers to purchase goods. and services at prices lower than those offered by a perfectly competitive private.

If a government or other authority subsidizes something, they pay part of the cost of it. Around the world, governments have subsidized the housing of middle- and upper-income groups. subsidized adjective. ... heavily subsidized prices for housing, bread, and meat.

Synonyms for subsidize On this page you'll find 48 synonyms, antonyms, and words related to subsidize, such as: bankroll, contribute, finance, fund, promote, and sponsor.

The subsidy may be a specific amount of money per unit of quantity of a good or service, or it may be calculated ad valorem as a specified percentage of the price per unit. A subsidy may also be calculated as the difference between a specified target price and the market price actually paid by a buyer.

Examples of subsidize in a Sentence The state subsidizes housing for low-income families. She feels that private businesses should not be subsidized by taxpayers. The company subsidizes health insurance for its employees.

?subsidize somebody/something to give money to somebody or an organization to help pay for something; to give a subsidy synonym fund. The housing projects are subsidized by the government.