nep-pub New Economics Papers
on Public Finance
Issue of 2006‒12‒01
two papers chosen by
Kwang Soo Cheong
Johns Hopkins University

  1. Taxation and The Crowding-Out Effect of Corporate Social Responsibility By Jérôme Ballet; Damien Bazin; Abraham Lioui; David Touahri
  2. Between-Group Transfers and Poverty-Reducing Tax Reforms By Makdissi, Paul; Mussard, Stéphane

  1. By: Jérôme Ballet (C3ED - Centre d'économie et d'éthique pour l'environnement et le développement - [IRD : UR063] - [Université de Versailles-Saint Quentin en Yvelines]); Damien Bazin (C3ED - Centre d'économie et d'éthique pour l'environnement et le développement - [IRD : UR063] - [Université de Versailles-Saint Quentin en Yvelines]); Abraham Lioui (Department of Economics - [Bar Ilan University, Ramat Gan, Israel.]); David Touahri (LEST - Laboratoire d'économie et de sociologie du travail - [CNRS : UMR6123] - [Université de Provence - Aix-Marseille I][Université de la Méditerranée - Aix-Marseille II])
    Abstract: We address in this paper the issue of the existence or not of a crowding-out effect of Corporate Social Responsability by government intervention through a lump sum tax. For this purpose, we build a model of impur altruism for firms. We show that in general it will happen to be that public policy crowds out corporate (private) contribution but the crowding-out will not be complete. Two interesting findings are that i) the intensity of the crowding-out depends upon the relative performance of the government in producing the public good and ii) that public policy has an impact on wages in the economy since it is the opportunity cost for firms that spend time on Corporate Social Responsibility.
    Keywords: Corporate Social Responsibility; Crowding-out effect; Taxation
    Date: 2006–11–14
  2. By: Makdissi, Paul (GREDI (Université de Sherbrooke)); Mussard, Stéphane (CEPS/INSTEAD, GREDI, GEREM)
    Abstract: In this paper, we propose the conception of within-group CD-curve, to apprehend the impact of indirect tax reforms on truncated distributions of consumption expenditures. This confers decision makers the ability to perform within-group transfers as well as between-group transfers to reduce poverty in particular groups or to obtain an overall poverty alleviation. Between-group transfers are implemented in order to introduce a fairness element into the indirect tax framework, allowing to test for the robustness of reducing-tax reforms, for any order of stochastic dominance.
    Keywords: CD-curve; Redistribution ; Stochastic dominance ; Tax reforms
    JEL: D63 H20
    Date: 2006–10

This nep-pub issue is ©2006 by Kwang Soo Cheong. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.