TY - JOUR
T1 - The Signaling Role of Charitable Contributions by Businesses
T2 - A Tax Policy Perspective
AU - Blumkin, Tomer
AU - Margalioth, Yoram
AU - Sadka, Efraim
AU - Sharoni, Adi
N1 - Publisher Copyright:
© 2022 The Author 2022. Published by Oxford University Press on behalf of the American Law and Economics Association. All rights reserved.
PY - 2022
Y1 - 2022
N2 - Empirical evidence suggests that charitable contributions to public goods by businesses may be driven not only by the familiar warm glow of giving motive but also as a means for businesses to signal high product quality. Building on this finding, we present an analytical framework that demonstrates that the optimal degree of subsidization should decrease with the extent to which the signal is informative and may even turn into a tax when the signal is sufficiently strong.
AB - Empirical evidence suggests that charitable contributions to public goods by businesses may be driven not only by the familiar warm glow of giving motive but also as a means for businesses to signal high product quality. Building on this finding, we present an analytical framework that demonstrates that the optimal degree of subsidization should decrease with the extent to which the signal is informative and may even turn into a tax when the signal is sufficiently strong.
UR - http://www.scopus.com/inward/record.url?scp=85132338395&partnerID=8YFLogxK
U2 - 10.1093/aler/ahab013
DO - 10.1093/aler/ahab013
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AN - SCOPUS:85132338395
SN - 1465-7252
VL - 24
SP - 87
EP - 115
JO - American Law and Economics Review
JF - American Law and Economics Review
IS - 1
ER -
