Non-discriminatory donation relief and strategic commitment under political competition
Monica Anna Giovanniello (),
Kimberley Scharf and
European Journal of Political Economy, 2019, vol. 58, issue C, 164-177
Tax relief for private donations towards the provision of collective goods can protect minorities from majority-driven outcomes in which tax revenues are exclusively used to finance the provision of public goods that are only valued by the majority. In this paper we show that non-discriminatory tax relief for private donations can arise in political equilibrium as a strategic commitment device aimed at creating and supporting political alliances that would not otherwise be able to coalesce.
Keywords: Tax relief; Private donations; Strategic policy commitment (search for similar items in EconPapers)
JEL-codes: D7 H2 H4 L3 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:poleco:v:58:y:2019:i:c:p:164-177
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