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
Related Goods Approaches - Direct Substitute Approach Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInterne

‘…Policies that promote residential mobility and increase the knowledge of the consumer-voter will improve the allocation of government expenditures in the same sense that mobility

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

Write a short note on product mix efficiency?

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

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

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

study guide for Magruder''s American Government. the tests are supper hard

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

3 voters, A, B, and C, will decide by majority rule whether to pass bills on issues X and Y. Every of the two issues will be voted on indiviually. The change in net profits (in dol