@techreport{ed0c0bda1d144492ae1a05c8e2901477,
title = "More Giving or More Givers? The Effects of Tax Incentives on Charitable Giving in the UK",
abstract = "This paper estimates the tax-price elasticity of giving using UK administrative tax return data, exploiting variation from a large tax reform. We estimate both the in- tensive and extensive-margin elasticity, using a novel instrumental variables strategy. Then, we derive new conditions to evaluate the welfare consequences of changes in the generosity of the subsidy to donations. We find a small intensive-margin elasticity of -0.2 and a substantial extensive-margin elasticity of -0.8, yielding a total elasticity of about -1. These estimates mask considerable heterogeneity: high-income individ- uals respond more on the intensive margin, while the extensive-margin response is stronger among low-income taxpayers.",
keywords = "Charity, Tax incentive, Giving",
author = "Kimberley Scharf and Miguel Almunia and Ben Lockwood",
year = "2017",
language = "English",
series = "CEPR Discussion Papers",
publisher = "Center for Economic Policy Research",
number = "DP12191",
address = "United Kingdom",
type = "WorkingPaper",
institution = "Center for Economic Policy Research",
}