Cable tax to the satellite tax, Public Economics

According to estimates by Goolsbee and Petrin (2004), the elasticity of demand for basic cable service is ?0.51, and the elasticity of demand for direct broadcast satellites is ?7.40. Suppose that a community wants to raise  a given amount of revenue by taxing cable service and the use of direct broadcasting satellites. If the community's goal is to raise the money as efficiently as possible, what should be the ratio of the cable tax to the satellite tax? Discuss briefly the assumptions behind your calculation.

Posted Date: 3/16/2013 1:04:27 AM | Location : United States







Related Discussions:- Cable tax to the satellite tax, Assignment Help, Ask Question on Cable tax to the satellite tax, Get Answer, Expert's Help, Cable tax to the satellite tax Discussions

Write discussion on Cable tax to the satellite tax
Your posts are moderated
Related Questions
Theory of optimal tax system is relevant for tax policy issue

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

How burden of public debt is transferred to future generations through reduced capital formation?

Write a 6-8 page, DOUBLE SPACED review essay on one of the following titles.  Although several editions exist for some of these titles, I encourage you to select a well edited an

How does it work? how is its basic structure?

What is the link between efficiency wages and shirking? There are two firms A and B identical in all respects except the following. In firm A increased expenditure on monitoring co

Question 1: "The only social responsibility of business is to increase its profits" wrote Milton Friedman, Economics Nobel prize winner, in an article in the New York Times Mag

This variant of coordination problem seeks the answer to why some countries fail to grow when public and private rent seeking makes property rights insecure. One reason is that re

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Suppose there are two inputs in the production function, labor (L) and capital (K), which can be combined to produce Y units of output according to the following production functio