IDEAS home Printed from https://ideas.repec.org/a/ucp/nattax/doi10.1086-724588.html

The Effect of Tax Price on Donations: Evidence from Canada

Author

Listed:
  • Ross Hickey
  • Brad Minaker
  • A. Abigail Payne
  • Joanne Roberts
  • Justin Smith

Abstract

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.

Suggested Citation

  • Ross Hickey & Brad Minaker & A. Abigail Payne & Joanne Roberts & Justin Smith, 2023. "The Effect of Tax Price on Donations: Evidence from Canada," National Tax Journal, University of Chicago Press, vol. 76(2), pages 291-315.
    • Handle: RePEc:ucp:nattax:doi:10.1086/724588
    DOI: 10.1086/724588
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/724588
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/724588
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/724588?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kirschnerová Pavlína & Janoušková Jana & Urbánek Tomáš, 2026. "Tax Policy and Philanthropy in the Czech Republic: The (Limited) Power of Tax Incentives," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Paradigm, vol. 36(2), pages 72-98.
    2. Rose Anne Devlin & Michela Planatscher, 2025. "Crowding Out of Private Contributions by Government Funding: The Importance of Charitable Activities and Population Served," Working Papers 2506E, University of Ottawa, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:nattax:doi:10.1086/724588. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/NTJ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.