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The effect of tax price on donations: evidence from Canada

Ross Hickey, Brad Minaker (), A. Payne, Joanne Roberts () and Justin Smith ()
Additional contact information
Brad Minaker: University of Guelph
Joanne Roberts: Yale-NUS College
Justin Smith: Wilfrid Laurier University

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: Using a large administrative dataset from Canada we estimate that the tax price elasticity of charitable donations is -1.9. When we allow for heterogeneity of this parameter across the income distribution, we observe a large elasticity at the bottom of the distribution between -3 and -4, and an elasticity closer to -1 at the top. We find evidence that the response to tax price occurs on both the intensive margin of how much to give, and the extensive margin of whether to give or not.

Keywords: donations; charity; tax price elasticity (search for similar items in EconPapers)
JEL-codes: H24 H31 H40 (search for similar items in EconPapers)
Pages: 44pp
Date: 2023-02
New Economics Papers: this item is included in nep-pbe and nep-pub
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https://melbourneinstitute.unimelb.edu.au/__data/a ... 429790/wp2023n02.pdf (application/pdf)

Related works:
Journal Article: The Effect of Tax Price on Donations: Evidence from Canada (2023) Downloads
Working Paper: The Effect of Tax Price on Donations: Evidence from Canada (2019) Downloads
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