EconPapers    
Economics at your fingertips  
 

Tax-price elasticity of charitable donations: Evidence from the German taxpayer panel

Maja Adena ()

Discussion Papers, Research Unit: Economics of Change from WZB Berlin Social Science Center

Abstract: I estimate permanent and transitory tax-price and income elasticity of charitable giving in Germany using a rich panel data of tax return for the years 2001-2006. Income tax reforms were implemented in 2004 and 2005. The results suggest that the permanent tax-price elasticity varies significantly by income class, ranging from -0.2 for low incomes to -1.6 for higher incomes. Permanent income elasticity does not vary much among income classes, is rather low, and ranges between 0.2-0.3. The donors adjust their donations gradually after changes in the tax schedule and respond to future predictable changes in price. They respond to changes in current and, to a smaller extent, in future income.

Keywords: charitable giving; price elasticity; tax incentives (search for similar items in EconPapers)
JEL-codes: D12 H24 H31 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-eur, nep-pbe, nep-pub and nep-sog
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/91720/1/777775360.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:zbw:wzbeoc:spii2014302

Access Statistics for this paper

More papers in Discussion Papers, Research Unit: Economics of Change from WZB Berlin Social Science Center Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2021-07-27
Handle: RePEc:zbw:wzbeoc:spii2014302