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
Alice and Bob survive on hamburgers and salads. Aliceís utility function is UA = hA(sA 1) where hA and sA are her consumption of hamburgers and salads respectively. Bobís utility

what are the costs and consequences of providing the subsidies and welfare?


When Neff says that "the very essence of public relations is grounded in communication" (2010 p.373) she goes on to point to two features of communication that should aid us in ana

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

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

Public Finance was always dealing with intervention through fiscal instruments, including federal relationships between different tiers of governments and later on it subsumed Publ

Let us now consider a situation in which we know the timing of a change in policy but are unsure about the composition of the future policy. The association of different policy co

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

In the context of hospital care, explain and distinguish between occupancy rate, capacity, and utilization.