Munich Personal RePEc Archive

The Impact of Taxes and Wasteful Government Spending on Giving

Sheremeta, Roman and Uler, Neslihan (2016): The Impact of Taxes and Wasteful Government Spending on Giving.

WarningThere is a more recent version of this item available.
[img]
Preview
PDF
MPRA_paper_71001.pdf

Download (755kB) | Preview

Abstract

We examine the impact of taxes and wasteful government spending on charitable giving. In our model, the government collects a flat-rate tax on income net of donations and wastes part of the tax revenue before redistribution. The model provides theoretical predictions which we test in a framed field experiment. The results of the experiment show that the tax rate has a weak and insignificant effect on giving. The degree of waste, however, has a large, negative and significant effect on giving, with the relationship moderated by the curvature in the utility function.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.