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Information, Belief Elicitation and Threshold Effects in the 5X1000 Tax Scheme: A Framed Field Experiment

Author

Listed:
  • Becchetti, Leonardo

    (University of Rome Tor Vergata)

  • Pelligra, Vittorio

    (University of Cagliari)

  • Reggiani, Tommaso G.

    (Cardiff University)

Abstract

In this paper we study by means of a framed field experiment on a representative sample of the population the effect on people's charitable giving of three, substantial and procedural, elements: information provision, belief elicitation and threshold on distribution. We frame this investigation within the 5X1000 tax scheme, a mechanism through which Italian taxpayers may choose to give a small proportion (0.5%) of their income tax to a voluntary organization to fund its activities. We find two main results: a social information effect, since information on total donations received by the organizations in the previous year significantly increases the share of donors, and a distributional effect, leading, the information provision, to a significant increase in the share of donors to the organization reporting the lowest aggregate donations.

Suggested Citation

  • Becchetti, Leonardo & Pelligra, Vittorio & Reggiani, Tommaso G., 2017. "Information, Belief Elicitation and Threshold Effects in the 5X1000 Tax Scheme: A Framed Field Experiment," IZA Discussion Papers 10710, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10710
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    Cited by:

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    2. Adena, Maja, 2021. "How can we improve tax incentives for charitable giving? Lessons from field experiments in fundraising," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 344-353.
    3. Alice Guerra & Brooke Harrington, 2023. "Regional variation in tax compliance and the role of culture," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 139-152, April.
    4. Paolo Silvestri, 2021. "Percentage tax designation institutions. On Sugden’s contractarian account," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 68(1), pages 101-130, March.

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    More about this item

    Keywords

    social information effect; 5X1000; framed field experiment; charitable-giving;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H00 - Public Economics - - General - - - General

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