What drives giving in extensive welfare states : the case of Germany

Borgloh, Sarah

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URL: http://ub-madoc.bib.uni-mannheim.de/2248
URN: urn:nbn:de:bsz:180-madoc-22489
Document Type: Working paper
Year of publication: 2008
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: H41 H24 ,
Subject headings (SWD): Deutschland , Spende , Wohltätigkeit , Sozialstaat , Steuervergünstigung , Preiselastizität , Einkommenselastizität
Keywords (English): private donations , income elasticity , price elasticity , welfare state
Abstract: Considerable empirical research exists on donations in the US and their determinants, including estimations of the income and price elasticity of giving. By contrast, less is known about the determinants of countries with an extensive welfare state. We address this deficiency by studying the drivers of charitable giving in Germany, a country with a highly developed welfare state, using tax return data of the years 2001 to 2003. Our study not only expands the literature by adding another country. Moreover, it uses modern econometric methods which account for the selection process inherent in charitable contributions. Our results suggest no significant differences between donors in the US and Germany with respect to income and price elasticities indicating that the mechanisms underlying the act of giving are similar for countries with highly different welfare state traditions.
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