Working Paper
On the Desirability of Taxing Charitable Contributions
Tomer Blumkin, Efraim Sadka
CESifo, Munich, 2007
CESifo Working Paper No. 1900
CESifo, Munich, 2007
CESifo Working Paper No. 1900
We develop a model that allows for public goods and status signaling through charitable contributions. This model provides a unified framework in which contributions are driven both by altruism and status signaling. We use this setup to re-examine the conventional practice of rendering a favorable tax treatment to charitable contributions.
CESifo Category
Public Finance
Public Finance
Keywords: optimal taxation, re-distribution, charitable contributions, inequality
JEL Classification: D600,H200