The Price Elasticity of Charitable Giving: Does the Form of Tax Relief Matter?
Research output: Contribution to journal › Article › peer-review
Colleges, School and Institutes
- BRISTOL UNIVERSITY
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.
|Number of pages||23|
|Journal||International Tax and Public Finance|
|Publication status||Published - 2015|