The Effect of Tax Price on Donations: Evidence from Canada
Authors: Hickey, Ross, Minaker, Brad, Payne, A. Abigail, Roberts, Joanne, and Smith, Justin
Overview
Abstract (English)
We study the efficacy of nonrefundable tax credits for charitable donations in Canada. Using an instrumental variables estimator with a large longitudinal administrative data set, we estimate the tax price elasticity of giving. We estimate the tax price elasticity of giving for all tax filers and within quintiles of the distribution of household income. Our full sample elasticity estimate is ?1.9, but we find evidence of larger estimates at the bottom of the distribution near ?3 and ?4. At the top quintile, we estimate this elasticity closer to ?1. We find evidence throughout the distribution of income that the response to tax price occurs on both the decision to give or not and how much to give.
Abstract (French)
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Details
| Type | Journal article |
|---|---|
| Author | Hickey, Ross, Minaker, Brad, Payne, A. Abigail, Roberts, Joanne, and Smith, Justin |
| Publication Year | 2023 |
| Title | The Effect of Tax Price on Donations: Evidence from Canada |
| Volume | 76 |
| Journal Name | National Tax Journal |
| Number | 2 |
| Pages | 291-315 |
| DOI | 10.1086/724588 |
| Publication Language | English |
- Hickey, Ross
- Hickey, Ross, Minaker, Brad, Payne, A. Abigail, Roberts, Joanne, and Smith, Justin
- The Effect of Tax Price on Donations: Evidence from Canada
- National Tax Journal
- 76
- 2023
- 2
- 291-315
- 10.1086/724588