Effects of Limiting the Number of Municipalities for Donation in the Furusato Nozei Program (Japanese)
Yoko Konishi,
Hikaru Ogawa,
Naoya Igei and
Chiemi Ito
Discussion Papers (Japanese) from Research Institute of Economy, Trade and Industry (RIETI)
Abstract:
Japan has a unique program called Furusato Nozei (tax payments to hometowns), which allows people to donate a portion of their taxes to their favorite municipalities in return for a gift. The program also provides a measure (called one-stop special measure) that allows donors to receive a tax deduction without filing a final tax return if they donate to five or fewer municipalities. This study verifies how this "limit constraint" measure, which sets a limit on the number of municipalities, affects donors' choices using the results of an original questionnaire survey on the use of the Furusato Nozei program in 2022. Clarifying the characteristics of donors by estimating a usage probability model, we examine the changes in donor behavior and the usage satisfaction for the program by donors facing the upper limit constraint. The analysis confirms that the limit constraint (1) suppresses the number of donation destinations and creates a clustering towards the upper limit level, (2) raises the donation amount per donation and decreases the number of municipalities receiving donations, and (3) leads to a decline in satisfaction with the program.
Pages: 35 pages
Date: 2024-03
New Economics Papers: this item is included in nep-pbe and nep-ure
References: Add references at CitEc
Citations:
Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/24j009.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eti:rdpsjp:24009
Access Statistics for this paper
More papers in Discussion Papers (Japanese) from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko (tanimoto-toko@rieti.go.jp).