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Philanthropy in a secular society

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  • Bittschi, Benjamin
  • Borgloh, Sarah
  • Wigger, Berthold U.

Abstract

In this study we investigate the relationship between religious and charitable giving. We test how income, the tax-price of giving and the German church tax, differently affect charitable donations of church members, individuals leaving church and nonchurch members. We find crowding in between the church tax and charitable giving for church members, but not for the church-leavers. In contrast to church members, donations of church-leavers and non-members are also highly responsive to the tax deductibility. Additionally, non-donors exhibit a significantly increased probability of leaving church compared to donors. Finally, we demonstrate that leaving church increases donations on the extensive margin but decrease giving along the intensive margin.

Suggested Citation

  • Bittschi, Benjamin & Borgloh, Sarah & Wigger, Berthold U., 2016. "Philanthropy in a secular society," ZEW Discussion Papers 16-021, ZEW - Leibniz Centre for European Economic Research.
  • Handle: RePEc:zbw:zewdip:16021
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    References listed on IDEAS

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    Cited by:

    1. Asatryan, Zareh & Joulfaian, David, 2021. "Taxes and business philanthropy in Armenia," ZEW Discussion Papers 21-022, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    Keywords

    charitable giving; secularization; church tax; Germany; fixed-effects poisson model;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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