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Are contributions of time and money substitutes or complements?

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  • Wei Yang

Abstract

This article empirically investigates the relationship between donations of time and money using Canadian tax policy reforms that changed the tax price of charitable donations. The 1988 reform where a charitable tax deduction was converted to a credit and the 2000 reform in provincial income taxes provide tax price variations plausibly exogenous to individuals’ unobserved heterogeneity. Our estimates on cross-price effects imply that individuals make more time donations as the tax price of charitable donations increases and hence money and time donations are substitutes, as some theories would imply. This contrasts with earlier findings using cross-sectional data.

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  • Wei Yang, 2016. "Are contributions of time and money substitutes or complements?," Applied Economics, Taylor & Francis Journals, vol. 48(37), pages 3526-3537, August.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:37:p:3526-3537
    DOI: 10.1080/00036846.2016.1139684
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    Cited by:

    1. Dittrich, Marcus & Mey, Bianka, 2021. "Giving time or giving money? On the relationship between charitable contributions," Journal of Economic Psychology, Elsevier, vol. 85(C).
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