The effect of tax price on donations: evidence from Canada

Estimating the responsiveness of charitable donations to changes in tax incentives is more than estimating a single number. Giving charity unlike normal consumption – it involves supporting delivery privately-provided public goods. Age and income may influence how give affect both decision as well much give. Using large administrative dataset from Canada estimate price elasticity donations, we that -1 when restricted be same for all individuals. Across distribution, however, observe an inverse U-shaped distribution ranges -1.4 -0.18. We also find differences across age groupings, population driven through intensive extensive margin.