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Financing Democracy

Author

Listed:
  • Hans Gersbach
  • Verena Liessem

Abstract

Based on contribution patterns to parties in Germany and elsewhere, we suggest that democracies should use a mixed system where private funding can play a larger role than public funding. In Germany the high level of public funding for parties can be reduced without expecting undesirable effects if the parties are forced to increase private funding. Private contributions can be unlimited but tight transparency requirements on private funding are necessary. This can be achieved by setting up an independent commission with institutionalized publication rules. Tax deductibility of private contributions should be eliminated.

Suggested Citation

  • Hans Gersbach & Verena Liessem, 2002. "Financing Democracy," CESifo Working Paper Series 821, CESifo.
    • Handle: RePEc:ces:ceswps:_821
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    File URL: https://www.cesifo.org/DocDL/cesifo_wp821.pdf
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    Citations

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    Cited by:

    1. Hans Gersbach, 2014. "Campaigns, political mobility, and communication," Public Choice, Springer, vol. 161(1), pages 31-49, October.
    2. Börner, Kira, 2004. "Political Economy Reasons for Government Inertia: The Role of Interest Groups in the Case of Access to Medicines," Discussion Papers in Economics 313, University of Munich, Department of Economics.

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