2019
DOI: 10.2139/ssrn.3508534
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Are Political and Charitable Giving Substitutes? Evidence from the United States

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Cited by 9 publications
(14 citation statements)
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“…Overall, we show that a one-percent increase in the price of charitable giving leads to a 25.4% increase in political donations. In other words, consistently with findings by Petrova et al (2020) who deduce substituability from the fact that households react differently to natural disasters and to political ads in their giving behavior, we show that charitable and political giving as substitutes. 13 The estimated elasticity is equal to 19% when we reduce our sample of analysis to the households who face a similar tax saving.…”
Section: Introductionsupporting
confidence: 91%
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“…Overall, we show that a one-percent increase in the price of charitable giving leads to a 25.4% increase in political donations. In other words, consistently with findings by Petrova et al (2020) who deduce substituability from the fact that households react differently to natural disasters and to political ads in their giving behavior, we show that charitable and political giving as substitutes. 13 The estimated elasticity is equal to 19% when we reduce our sample of analysis to the households who face a similar tax saving.…”
Section: Introductionsupporting
confidence: 91%
“…Campaign contributions and charitable giving are indeed most often not analyzed in conjunction, while they may be considered as the two sides of the same coin. 16 An exception is Petrova et al (2020) who provide evidence that individuals substitute between political contributions and charitable contributions using data from the US and shocks on charitable and political giving (see also Yörük (2015) who uses survey data to investigate the spillover effects of charitable subsidies on political giving in the US between 1990 and 2001 and finds complementarity between the two kinds of donations). 17 We contribute to this literature by looking at substitution effects within the same donors.…”
Section: Introductionmentioning
confidence: 99%
“…Recent papers showing that charitable and political giving may be related (see, e.g. Petrova et al, 2020) suggest that these effects may be due to donor or candidate activity. In the context of political campaigns, whether decreased private donation activity is due to donor or candidate behavior is a first-order concern.…”
Section: Discussionmentioning
confidence: 99%
“…8 Third, our results on the program's effects on private contribution activity relate to the broader literature on public crowd-out of private giving. Recent evidence has suggested that political and nonprofit giving may be substitutes (Petrova et al, 2020), and thus it is natural to investigate whether public grants to political campaigns have similar effects on private giving as public grants to nonprofits.…”
Section: Introductionmentioning
confidence: 99%
“…On the other hand, the field experiments of Karlan and List (2007) and Karlan et al (2011) find only weak evidence that even 1:3 matches increase giving. Bittschi et al (2020) study the relation between religious and charitable giving, while Yörük (2015) and Petrova et al (2020) study the relation between political and charitable giving. Randolph (1995) shows that estimates of price elasticity of giving can be exaggerated if arguments of inter-temporal shifting are ignored.…”
Section: Literaturementioning
confidence: 99%