Efficient Public Investment in Telecommunications Infrastructure

Lee L. Selwyn

Land Economics, 1995, vol. 71, issue 3, 331-342

Abstract: One key telecommunications issue being discussed in both state and national forums is the effect of regulatory programs on the development of telecommunications infrastructure and any potential beneficial impacts on the national economy. Some have advised government agencies to develop and implement "industrial policy" initiatives to achieve specific investment objectives. These issues are examined by analyzing the assumption that increases in telecommunications infrastructure should be implicitly funded by "taxing" current telecommunications ratepayers with deliberately overstated government-regulated telephone rates. The paper emphasizes the economics literature concerning private provision of quasi-public goods and quantitative macroeconomic effects of taxing consumers.

Date: 1995
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