CHOOSING BETWEEN CHARITABLE ACTIVITIES

Naomi Feldman

No 516, Working Papers from Ben-Gurion University of the Negev, Department of Economics

Abstract: This paper analyzes the impact of a preferential tax-price for monetary donations on the joint decision to donate time (volunteer) and money. Using results from a structural model and data from a national survey on household charitable giving behavior, I simulate the effects of a government policy that would increase eligibility for a preferential tax treatment of monetary donations on donations of both charitable goods. The results show that donations of time and money are substitutes in the traditional sense?as the tax-price of a dollar of monetary donations decreases, the probability of donating time also decreases. However, the results also show that a decrease in the tax price of monetary donations also has a positive direct effect on donations of time, in contrast to the substitution effect. This positive direct effect more than offsets the substitution effect leading to an increase in the proportion of individuals who donate both time and money as the tax-price of monetary donations falls.

Keywords: Charitable giving; volunteering (search for similar items in EconPapers)
JEL-codes: H24 H31 (search for similar items in EconPapers)
Pages: 32pages
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://in.bgu.ac.il/en/humsos/Econ/Workingpapers/0516.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:bgu:wpaper:0516

Access Statistics for this paper

More papers in Working Papers from Ben-Gurion University of the Negev, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Aamer Abu-Qarn ().