Newspaper Differentiation and Investments in Journalism: The Role of Tax Policy

Hans Jarle Kind, Guttorm Schjelderup and Frank Stähler

No 2009/12, Discussion Papers from Norwegian School of Economics, Department of Business and Management Science

Abstract: Newspapers are considered to be important providers of information, culture and language, and are taxed at a reduced VAT rate in most countries. This paper shows that such a policy may affect newspaper di¤erentiation and lead to greater media bias. We further show that a reduced-rate VAT scheme may lead to higher newspaper prices and less investment in journalism. These results are obtained by explicitly taking into account the fact that newspapers operate in two sided markets, where they raise revenue both from readers and advertisers.

Keywords: Two-sided markets; ad-valorem taxes (search for similar items in EconPapers)
JEL-codes: D40 D43 H21 H22 L13 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2009-11-11
New Economics Papers: this item is included in nep-cul
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Related works:
Journal Article: Newspaper Differentiation and Investments in Journalism: The Role of Tax Policy (2013)
Working Paper: Newspaper Differentiation and Investments in Journalism: The Role of Tax Policy (2011)
Working Paper: Newspaper Differentiation and Investments in Journalism: The Role of Tax Policy (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:nhhfms:2009_012

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