| Popis: |
We estimate the elasticity of charitable giving with respect to persistent and transitory price and income changes using a 1979–2006 panel of tax returns. Our estimation procedure allows for anticipation of and gradual adjustment to tax changes, controls for various potential sources of omitted variable bias via fi xed effects and income-class specifi c year dummies, and allows for a fl exible non-linear relationship between income and charitable giving. Our most convincing estimates are identifi ed by differences in the time-paths of tax incentives across states, and suggest a persistent price elasticity in excess of one in absolute value. |
