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The price elasticity of charitable giving: does the form of tax relief matter?

Kimberley Scharf and Sarah Smith

International Tax and Public Finance, 2015, vol. 22, issue 2, 330-352

Abstract: We use a survey-based approach to compare the effects of alternative forms of tax relief on donations—a tax rebate for the donor and a matched payment to the charity. On accounting grounds these two are equivalent but, in line with earlier experimental studies, we find that charitable contributions are significantly more responsive to a match than to a rebate. The difference can largely be explained by the fact that a majority of donors do not adjust their nominal donations in response to a change in subsidy. We relate our findings to the growing literature on behavioural tax policy. Copyright Springer Science+Business Media New York 2015

Keywords: Charitable giving; Tax incentives; Match and rebate; Salience; H2; D0; D8 (search for similar items in EconPapers)
Date: 2015
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Related works:
Working Paper: The price elasticity of charitable giving: does the form of tax relief matter? (2010) Downloads
Working Paper: The Price Elasticity of Charitable Giving:Does the Form of Tax Relief Matter? (2010) Downloads
Working Paper: The price elasticity of charitable giving: does the form of tax relief matter? (2010) Downloads
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International Tax and Public Finance is currently edited by Ronald B. Davies and Kimberly Scharf

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