Charitable giving in the German welfare state
Bönke, Timm ;  Massarrat-Mashhadi, Nima ;  Sielaff, Christian ;  ;  Universität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft

Main titleCharitable giving in the German welfare state
Subtitlefiscal incentives and crowding out
AuthorBönke, Timm
AuthorMassarrat-Mashhadi, Nima
AuthorSielaff, Christian
EditorUniversität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft
No. of Pages41 S.
Series ; 2010,30 : Economics
KeywordsCharitable giving; crowding out; price and income elasticity; censored quantile regression; income tax return data
Classification (DDC)336 Public finance
AbstractGovernmental activities in welfare states influence private charitable giving predominantly in two ways: (1) government spending on the provision of public goods may cause crowding out of private charitable contributions; and (2) tax incentives may boost private charitable giving.
For a rich sample of German income tax returns, we estimate elasticities of charitable giving regarding tax incentives, income and governmental spending. Using censored quantile regression, we are able to derive results for different points of the underlying distribution of charitable giving. Assuming a world with impure altruism (Andreoni 1990), we find evidence for impurely altruistic giving behaviour. Taking crowding out into account, tax deductibility of charitable giving suffices to foster private giving to offset foregone tax revenues.
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FU DepartmentDepartment Business and Economics
Other affiliation(s)Lehrstuhl für Öffentliche Finanzen
Year of publication2010
Type of documentBook
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Created at2011-01-05 : 01:54:19
Last changed2016-01-05 : 02:38:21
Static URLhttp://edocs.fu-berlin.de/docs/receive/FUDOCS_document_000000009096