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Charitable contributions and tax price elasticities for nonitemizing taxpayers

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  • David Eaton

Abstract

This paper uses a balanced panel of taxpayers to examine the price and income elasticities for charitable contributions for nonitemizing taxpayers. One-way and two-way static fixed effects models are used to estimate these elasticities. Additionally, this paper incorporates dynamic panel analysis within the constraints of the data. The data are from the Individual Tax Model File panel of taxpayers, maintained by the University of Michigan. This paper finds no significant price elasticities for nonitemizers. The results of this paper would argue that there is no compelling economic reason to extend charitable contribution deductions to nonitemizers. Copyright International Atlantic Economic Society 2001

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  • David Eaton, 2001. "Charitable contributions and tax price elasticities for nonitemizing taxpayers," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(4), pages 431-442, November.
    • Handle: RePEc:kap:iaecre:v:7:y:2001:i:4:p:431-442:10.1007/bf02295772
    DOI: 10.1007/BF02295772
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    References listed on IDEAS

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    1. Duquette, Christopher M., 1999. "Is Charitable Giving by Nonitemizers Responsive to Tax Incentives? New Evidence," National Tax Journal, National Tax Association, vol. 52(n. 2), pages 195-206, June.
    2. Clotfelter, Charles T., 1980. "Tax incentives and charitable giving: evidence from a panel of taxpayers," Journal of Public Economics, Elsevier, vol. 13(3), pages 319-340, June.
    3. Duquette, Christopher M., 1999. "Is Charitable Giving by Nonitemizers Responsive to Tax Incentives? New Evidence," National Tax Journal, National Tax Association;National Tax Journal, vol. 52(2), pages 195-206, June.
    4. Barrett, Kevin S., 1991. "Panel-Data Estimates of Charitable Giving: A Synthesis of Techniques," National Tax Journal, National Tax Association, vol. 44(3), pages 365-81, September.
    5. Choe, Yook S. & Jeong, Jhook, 1993. "Charitable Contributions by Low-and Middle-Income Taxpayers: Further Evidence With a New Method," National Tax Journal, National Tax Association, vol. 46(1), pages 33-39, March.
    6. Barrett, Kevin S., 1991. "Panel-Data Estimates of Charitable Giving: A Synthesis of Techniques," National Tax Journal, National Tax Association;National Tax Journal, vol. 44(3), pages 365-381, September.
    7. Choe, Yook S. & Jeong, Jhook, 1993. "Charitable Contributions by Low-and Middle-Income Taxpayers: Further Evidence With a New Method," National Tax Journal, National Tax Association;National Tax Journal, vol. 46(1), pages 33-39, March.
    8. Clotfelter, Charles T, 1980. "Tax Incentives and Charitable Giving: Evidence from a Panel of Taxpayers," Empirical Economics, Springer, vol. 13(3), pages 319-340, June.
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    Cited by:

    1. Backus, Peter, 2010. "Is charity a homogeneous good?," Economic Research Papers 270773, University of Warwick - Department of Economics.
    2. Backus, Peter, 2010. "Is charity a homogeneous good?," The Warwick Economics Research Paper Series (TWERPS) 951, University of Warwick, Department of Economics.

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