Charitable giving and federal income tax policy: additional evidence based on panel-data elasticity estimates

Nearly all traditional charitable-giving studies conclude donors are more responsive to price-reducing charitable deductions (the price effect) than they are to income-reducing tax payments (the income effect). Thus, taxes stimulate giving. In addition, this empirical evidence also indicates that the charitable deduction is treasury efficient. This traditional understanding was recently challenged by studies employing observations on the same individuals across time (panel data). These panel studies provide evidence which suggest that donors are either much more responsive to income reducing tax payments than they are to price-reducing charitable deductions or just as responsive to both. Further, price elasticity estimates are much greater than negative one. Thus, the deduction is inefficient and giving is either neutral to, or inhibited by, taxes.

Name thesis:degree_name

Ph. D.

Level thesis:degree_level

doctoral

Discipline thesis:degree_discipline

Accounting and Information Systems

Department dc:contributor.department

Accounting and Information Systems

Grantor dc:publisher

Virginia Tech

Year dc:date.issued

1991

Author dc:creator

• Barrett, Kevin Stanton

Chair dc:contributor.committeechair

• O'Neil, Cherie J.

Committee members dc:contributor.committeemember

• Brown, Robert M.
• Yardley, James A.
• McGuirk, Anya M.
• Steinberg, Richard
• Thompson, G. Rodney

Statement dc:rights

• In Copyright

Licence dc:rights.uri

• http://rightsstatements.org/vocab/InC/1.0/

Language dc:language.iso

en

Dc Identifier Other

etd-07282008-135657

OAI identifier oai:identifier

oai:vtechworks.lib.vt.edu:10919/38984