How do taxes on car sales affect television advertising strategies? A model for predicting advertising intensity around emissions-related tax changes

Many countries have leveraged sales tax to discourage (or encourage) consumption of socially undesirable (or desirable) products.
Deng, Jiang, and Jiang

Management Slant

  • There is a significant relationship between television advertising intensity and the sales tax rate.
  • Increases in the tax rate for low-emission vehicles reduce the intensity of television advertising for...
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