Journal ArticleDOI
Consistent Estimation of the Impact of Tax Deductibility On the Level of Charitable Contributions
TLDR
In this article, the authors take the econometric problem of the spurious correlation between the level of contributions and the observed marginal price into account in estimating a contributions demand function using data from the 1972-73 Consumer Expenditure Survey and provide evidence on the impacts of alternative tax policies on charitable giving using their estimates of the model parameters.Abstract:
When charitable contributions are tax deductible, the marginal price of charitable giving in other consumption foregone per dollar of contributions is generally less than unity. Further, if the income tax schedule is a progressive step function, the marginal price of contributions is generally a rising step function of the level of contributions. The problem of estimating a contributions demand function for individuals is therefore complicated by the spurious correlation between the level of contributions and the observed marginal price. We take this econometric problem into account in estimating a contributions demand function using data from the 1972-73 Consumer Expenditure Survey. After comparing our results with those of estimation techniques used by other authors, we provide evidence on the impacts of alternative tax policies on charitable giving using our estimates of the model parameters.read more
Citations
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Journal ArticleDOI
Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence
TL;DR: The authors formally developed a model of giving in which altruism is not "pure." In particular, people are assumed to get a "warm glow" from giving, and this model generates identifiable comparative statics results that show that crowding out of charity is incomplete and that government debt will have Keynesian effects.
Journal ArticleDOI
A Literature Review of Empirical Studies of Philanthropy: Eight Mechanisms That Drive Charitable Giving
René Bekkers,Pamala Wiepking +1 more
TL;DR: This article presented an overview of the academic literature on charitable giving based on a literature review of more than 500 articles and identified eight mechanisms as the most important forces that drive charitable giving: (a) awareness of need; (b) solicitation; (c) costs and benefits; (d) altruism; (e) reputation; (f) psychological benefits, (g) values; (h) efficacy.
Journal ArticleDOI
Privately provided public goods in a large economy: The limits of altruism
TL;DR: In particular, as the size of the economy grows, the fraction contributing to the public good diminishes to zero as mentioned in this paper, which leads to a very limited model with little, if any, predictive power.
Journal ArticleDOI
An Accurate Measurement of the Crowd Out Effect, Income Effect and Price Effect for Charitable Contributions
TL;DR: In the past, empirical research on charitable contributions has focused on two issues: estimating the income and price elasticities of contributions and estimating the extent to which government funding crowded out private contributions as discussed by the authors.
Posted Content
A Discrete/Continuous Choice Approach to Residential Water Demand under Block Rate Pricing: Reply
TL;DR: In this article, the authors extend the microeconomic theory of block rate pricing to the general case of a K-block rate structure, whereas the econometric theory is largely confined to the case of exactly two blocks.
References
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Estimation and Inference in Nonlinear Structural Models
Journal ArticleDOI
The demand for electricity: a survey
TL;DR: A survey and critique of the econometric literature on the demand for electricity can be found in this paper, where the focus is on residential demand, but the few studies analyzing commercial and industrial demand are also reviewed.
Journal ArticleDOI
The Effect of Taxation on Labor Supply: Evaluating the Gary Negative Income Tax Experiment
Gary Burtless,Jerry A. Hausman +1 more
TL;DR: In this paper, a model of labor supply is formulated which takes explicit account of nonlinearities in the budget set which arise because the net, after-tax wage depends on hours worked.
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A Proposed Modification of Taylor's Demand Analysis: Comment
TL;DR: In estimating demand functions for electricity, it is appropriate to use a variable equivalent to a lump-sum payment the customer must make before buying as many units as he wants, at the marginal price.
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Tax incentives and charitable contributions in the United States: A microeconometric analysis
TL;DR: There are several widely discussed proposals for changing the tax treatment of charitable contributions, including the complete abolition of the deduction, the substitution of a system of tax credits, the introduction of a "floor" with a deduction or credit only for contributions above that level, and various modifi-