Please use this identifier to cite or link to this item:
https://hdl.handle.net/2440/108973
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Type: | Journal article |
Title: | Newspaper differentiation and investments in journalism: the role of tax policy |
Author: | Kind, H. Schjelderup, G. Stähler, F. |
Citation: | Economica, 2013; 80(317):131-148 |
Publisher: | Wiley |
Issue Date: | 2013 |
ISSN: | 0013-0427 1468-0335 |
Statement of Responsibility: | Hans Jarle Kind, Guttorm Schjelderup, and Frank Stähler |
Abstract: | Many countries levy reduced-rate indirect taxes on newspapers, with proclaimed policy goals of stimulating investment in journalism and ensuring low newspaper prices. However, by taking into account the fact that the media industry operates in two-sided markets, we find the paradoxical result that the consequences of a low-tax regime might be quite the opposite. We also show that the low-tax regime tends to increase newspaper differentiation. If the advertising market is relatively small, the newspapers might invest too little in journalism and be too differentiated from a social point of view. In this case a tax increase will be welfare-enhancing. |
Rights: | © 2012 The London School of Economics and Political Science. Published by Blackwell Publishing, 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main St, Malden, MA 02148, USA |
DOI: | 10.1111/j.1468-0335.2012.00938.x |
Published version: | http://dx.doi.org/10.1111/j.1468-0335.2012.00938.x |
Appears in Collections: | Aurora harvest 8 Economics publications |
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RA_hdl_108973.pdf Restricted Access | Restricted Access | 272.49 kB | Adobe PDF | View/Open |
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