Is Charitable Giving by Nonitemizers Responsive to Tax Incentives? New Evidence

1999 ◽  
Vol 52 (2) ◽  
pp. 195-206
Author(s):  
Christopher M. Duquette
Keyword(s):  
Charitable Giving ◽  
Tax Incentives ◽  
New Evidence

scholarly journals Price Elasticities of Charitable Giving across Donation Sectors in Canada: Is the Tax Incentive Effective?

2012 ◽  
Vol 2012 ◽  
pp. 1-6 ◽  
Author(s):  
Belayet Hossain ◽  
Laura Lamb
Keyword(s):  
Public Policy ◽  
Charitable Giving ◽  
Tax Incentives ◽  
Tax Credit ◽  
Credit System ◽  
Charitable Donation ◽  
Price Elasticities ◽  
Tax Incentive

The effectiveness of tax incentives on charitable donation expenditures in Canada is explored, and the analysis is extended to compare the effectiveness across different donation sectors. Price elasticities are estimated with data from the 2007 Canada Survey of Giving, Volunteering and Participating. Results suggest that specific charitable sectors are affected differently by Canada’s tax credit system. The findings have implications for public policy.

Tax Incentives and Charitable Giving: Evidence from New Survey Data

1987 ◽  
Vol 15 (4) ◽  
pp. 386-396 ◽  
Author(s):  
Eleanor Brown
Keyword(s):  
Survey Data ◽  
Price Elasticity ◽  
Charitable Giving ◽  
Tax Incentives ◽  
Data Set ◽  
Elasticity Estimate

A new survey data set is used to obtain estimates of the tax price elasticity of personal giving to tax-deductible charitable causes. Like other surveys, the data here yield a large elasticity estimate, roughly two and a half for a representative household when Tobit estimation is used. One hypothesis for the discrepancy between such large estimates and values close to unity found in tax data is that there is an “itemization effect” reflecting nonrandom selection in tax data; the Florida data do not support this hypothesis. Another explanation for the discrepancy between tax-file-based and survey-based estimates is that the standard use of OLS rather than Tobit biases the elasticity more in survey data, where many people report zero gifts. For the Florida data, using OLS increases the estimated elasticity by about 30%; while this effect cannot explain why the Florida data produce such large elasticities, it suggests that OLS estimates in earlier studies should be used with caution.

Are Tax Incentives for Charitable Giving Efficient? Evidence from France

2010 ◽  
Vol 2 (2) ◽  
pp. 117-141 ◽  
Author(s):  
Gabrielle Fack ◽  
Camille Landais
Keyword(s):  
Quantile Regression ◽  
Family Size ◽  
Price Elasticity ◽  
Charitable Giving ◽  
Tax Incentives ◽  
Regression Estimator ◽  
Difference In Difference ◽  
Distributional Effects ◽  
Charitable Contributions ◽  
Censored Quantile Regression

This paper estimates the effect of tax incentives for charitable contributions in France. We focus on two reforms that increased the nonrefundable tax credit rate for charitable contributions by 32 percent. We use a difference-in-difference identification, comparing the evolution of contributions for groups of households with similar income, but different taxable status due to differences in family size. We control for censoring issues and investigate distributional effects using a three-step censored quantile regression estimator. We find that the price elasticity of contributions is relatively small, but tends to increase with the level of gifts. (JEL D14, D64, H24)

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