From a public finance perspective, the article discusses alternative allocation policies for public broadcasting. Referring to a scheme for the optimal procurement of public goods two solutions are shown to be optimal, depending on the initial situation: Assuming a public service mission, public broadcasting is to be treated as a pure public good. Thus, it should be funded via a compulsory levy. Payers should include total population above a specific age. However, questioning the public service mission, public broadcasting represents a club good, which should be funded via voluntary contributions of actual users. To accomplish this, country-wide digitalization is necessary, which will be realized in Germany not before 2010. Copyright 2007 die Autoren Journal compilation 2007, Verein für Socialpolitik und Blackwell Publishing Ltd.
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