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The Macroeconomic Effects of Corporation Social Responsibility (in Chinese)

  • Author Wei-Neng Wang
  • Abstract This paper develops a dynamic general equilibrium model to analyze the macroeconomic and welfare effects of corporate social responsibility (CSR). Analytically, this paper exhibits the effects of CSR on consumption, corporate value, and social welfare are ambiguous. The calibration results show that the steady-state corporate value and social welfare exhibit inverted U-shaped relationships with CSR. Moreover, an increase in CSR can result in a double-dividend in terms of enhancing both corporate value and social welfare, provided that the status quo CSR expenditure is moderate. Also, the corporate-value-maximizing CSR expenditure is lower than the welfare-maximizing CSR expenditure. From the policy implication’s point of view, this paper manifests that although an increase in the tax-deductible ratio of CSR expenditure can improve social welfare, it will also distance the state from welfare-maximizing.
  • Link http://www.econ.sinica.edu.tw/UpFiles/2013090214141704234/Messagess_Flies2013100417174743120/201927刊登定稿.pdf