RTV Theory and Practice - Special Issue

Тах certificates 'аге by far the most extensively used of the incentives studied here . This is not surprising since tax certificates are incentives to the seller and there are no repuirements for the seller except to purchase another broadcast property while avoiding capital gains taxes . / Distress sales , on the other hand, are not particulariy desirable even though they are i.ncentives to the seller because it means the seller is in trouble with the F.C.C. Use of this incentive was expected to occur rarely before 1982 and hard!y at all after deregulation in 1982. This appears to be the case . While it does not appear that Broadcap loan programs are used extensively , it must be noted that there are other loan programs available , and broadcast properties are expensive so $B.l tnillion may not go a long way'. Broadcap staff indicate that they choose about one in ten applicants , so were more топеу avaiiable , this would unđoubtedly be a more heavily useđ incentive . 1 ,b Incentives and Mar Ket Size It was hypothesized that tax certificates wouid expand lower market penetration by black purchasers because the reguirement for receiving a certificate is that the seller purchase another station . It was thought sellers would be selling their lower market stations in order to purchase higher valued stations . This hypothesis does not appear to be confirmed . Of the 23 tax certificates issued, 16, or roughly 70/, were issueđ to stations purchased in the top 50 markets . Of the 8 distress sales , four were in the top 50 markets , 4 were in the lower markets. Comparing purchases using incentives to those without incentives, the numbers look similar. There are about twice as тапу purchases in the top fifty markets compared to the lower fifty markets , regardless of whether an incentive was used .

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