Taxation by regulation and regulation by taxation: The case of local cable TV regulation

    Authors

    Y. Otsuka;B. M. Braun

    Comments

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    Abbreviated Journal Title

    Rev. Ind. Organ.

    Keywords

    consumer welfare; regulation by taxation; taxation by regulation; FRANCHISE MONOPOLY; TELEVISION; INDUSTRY; DEMAND; CATV; Economics; Management

    Abstract

    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.

    Journal Title

    Review of Industrial Organization

    Volume

    21

    Issue/Number

    1

    Publication Date

    1-1-2002

    Document Type

    Article

    Language

    English

    First Page

    21

    Last Page

    40

    WOS Identifier

    WOS:000176415200003

    ISSN

    0889-938X

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