Taxation by regulation and regulation by taxation: The case of local cable TV regulation
Abbreviated Journal Title
Rev. Ind. Organ.
consumer welfare; regulation by taxation; taxation by regulation; FRANCHISE MONOPOLY; TELEVISION; INDUSTRY; DEMAND; CATV; Economics; Management
Until late 1986, municipalities played a major role in cable television regulation. Municipalities not only regulated pricing and quality decisions but also taxed cable systems in the forms of in-kind and in-cash concessions. These activities appear to fit well with the concept of taxation-by-regulation, which concludes that consumer welfare is reduced because of the rent seeking behavior of local politicians. At the same time however, the notion of regulation-by-taxation is equally plausible. That is, politicians may use taxation as a means to regulate the activity of a monopoly by limiting monopoly rents and improving consumer welfare. This article empirically separates these two effects and investigates the implications for consumer welfare.
Review of Industrial Organization
"Taxation by regulation and regulation by taxation: The case of local cable TV regulation" (2002). Faculty Bibliography 2000s. 3389.