EconPapers    
Economics at your fingertips  
 

Do Charitable Subsidies Crowd Out Political Giving? The Missing Link between Charitable and Political Contributions

Barış Yörük

The B.E. Journal of Economic Analysis & Policy, 2015, vol. 15, issue 1, 407-435

Abstract: In the United States, charitable contributions can be deducted from taxable income making the price of giving inversely related to the marginal tax rate. However, several other types of contributions such as donations to political organizations are not tax deductible. This paper investigates the spillover effects of charitable subsidies on political giving using five cross-sectional surveys of charitable and political giving in the United States conducted from 1990 to 2001. The results show that charitable and political giving are complements. Compared with non-donors, charitable donors are more likely to donate and give more to political organizations. Increasing the price of charitable giving decreases not only charitable giving but also the probability of giving and the amount of donations to political organizations. This effect is robust under different specifications and highlights the externalities created by charitable subsidies.

Keywords: charitable giving; political giving; tax price of giving (search for similar items in EconPapers)
JEL-codes: H24 H31 L38 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://doi.org/10.1515/bejeap-2012-0026 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Working Paper: Do Charitable Subsidies Crowd Out Political Giving? The Missing Link Between Charitable and Political Contributions (2013) Downloads
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:bpj:bejeap:v:15:y:2015:i:1:p:29:n:1

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/bejeap/html

DOI: 10.1515/bejeap-2012-0026

Access Statistics for this article

The B.E. Journal of Economic Analysis & Policy is currently edited by Hendrik Jürges and Sandra Ludwig

More articles in The B.E. Journal of Economic Analysis & Policy from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2025-03-19
Handle: RePEc:bpj:bejeap:v:15:y:2015:i:1:p:29:n:1