What Drives Giving in Extensive Welfare States? The Case of Germany

Borgloh, Sarah

doi:10.2139/ssrn.1338783

Cited by 3 publications

(4 citation statements)

References 30 publications

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“…Further extensions also apply similar approaches to corporate giving (Clotfelter, 1985b;Auten, Cilke and Randolph, 1992) and charitable bequests (Joulfaian, 1991;Joulfaian, 2000). Increasingly, this literature also spreads to non-Anglo-Saxon countries, such as Germany (Borgloh, 2008).…”

Section: Elasticity Of Giving In the Micro-econometric Literaturementioning

confidence: 99%

Voluntary Giving and Economic Growth: Time Series Evidence for the US

Heinemann

2010

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp10075.pdf Non-technical SummaryGiven the substantial consolidation pressure in tax dependent government budgets, voluntary contributions play an increasing role in the financing of activities related to welfare, culture or education. There is hope that voluntary giving may at least partially become a stable substitute for tax financing. Tax revenues are highly sensitive to economic growth and the business cycle. Hence, a first question arises as to which extent voluntary giving is equally sensitive to the business cycle. Insofar it is less elastic compared to taxation it might contribute to a more stable financing of public goods over the business cycle. A second question relates to the long-run impact of trend growth on giving and to the extent to which giving benefits from the augmentation of an economy's economic resources. If the long-run growth elasticity of aggregate giving is large, this result would point to a yielding source of finance whose importance can be expected to grow with an expanding economy.Therefore, this paper analyzes the sensitivity of aggregate giving to both business cycle developments and trend growth. In this respect it contributes to fill a blank spot in the charitable giving literature. The study applies time series modeling which follows approaches developed to analyze the tax revenue-growth-nexus. This cointegration modeling takes account of a possible long-run link between income and giving which may temporarily interfere with cyclical fluctuations. The resulting error correction specification allows disentangling the short-run (business cycle related) from the long-run (potential growth related) income elasticity. These tools are applied to data on US giving for a forty-year period for the aggregate of total giving and for its subcomponents (individual, corporate, foundation giving, and charitable bequests).With tax revenues as a point of reference, US giving constitutes indeed a relatively stable source of revenue. Total giving is characterized by a business cycle volatility which is comparable to the moderate one of indirect taxes. However, this overall finding is composed of the respective sub-components' very different short-run GDP-elasticities. Whereas individual and in particular corporate giving is quite sensitive to cyclical fluctuations, foundation giving and charitable bequests tend to stabilize total giving over the business cyc...

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Section: Elasticity Of Giving In the Micro-econometric Literaturementioning

confidence: 99%

Voluntary Giving and Economic Growth: Time Series Evidence for the US

Heinemann

2010

SSRN Journal

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“…In any case, a Tobit model has also been run, as well as simple regressions with the whole sample à la Feldman and Slemrod (2007) (adding 1 to donations before logging). The application of a Heckman estimation to account for selection in charitable Inequality in tax evasion contributions is very novel in the literature; to the best of our knowledge it has only been explored previously in Borgloh (2008) with German data (but not for estimating tax evasion).…”

Section: Inequality In Tax Evasionmentioning

confidence: 99%

“…contributions is very novel in the literature; to the best of our knowledge it has only been explored previously in Borgloh (2008) with German data (but not for estimating tax evasion).…”

Section: Inequality In Tax Evasionmentioning

confidence: 99%

Inequality in tax evasion: the case of the Spanish income tax

Hetland

2020

AEA

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Purpose The purpose of this paper is to estimate tax evasion and its impact on progressivity, redistribution and the measurement of inequality, using microdata from the Spanish income tax for 2001-2004. Design/methodology/approach The approach follows Feldman and Slemrod (2007) by exploiting the relation of charitable donations with the composition of income but introduces two methodological innovations, which could be useful for further studies: correction for sample selection with a Heckman two-step setting and the calculation of different evasion rates for top incomes with an interaction term. Findings Evasion in capital incomes was significant throughout these years. Financial incomes were reported at around 50-70 per cent of their real value, with the lowest estimates corresponding to the top decile. Revenues from fixed capital display similarly low compliance rates for the top 10 per cent. Tax evasion in self-employment incomes (direct assessment) is estimated at 20 per cent for 2001. Mostly because of a composition effect, this means that fraud was higher at the top of the income distribution, thus having a regressive impact. Inequality statistics and top income concentration estimates should, therefore, be revised upwards. Originality/value This is the first paper to estimate the distributive impacts of tax evasion in Spain, and one of very few internationally.

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“…3 14% to educational goals and 9% to support human services, 5 the numbers for Germany were: 33% for emergency relief, 24% for child welfare and 24% for foreign aid. 6 Around two thirds of private donations in Germany are paid in form of membership fees for nonprofit associations and organizations.…”

Section: Introductionmentioning

confidence: 99%

Tax-price elasticity of charitable donations – evidence from the German taxpayer panel

Adena¹

2021

The Routledge Handbook of Taxation and Philanthropy

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Discussion papers of the WZB serve to disseminate the research results of work in progress prior to publication to encourage the exchange of ideas and academic debate. Inclusion of a paper in the discussion paper series does not constitute publication and should not limit publication in any other venue. The discussion papers published by the WZB represent the views of the respective author(s) and not of the institute as a whole.

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What Drives Giving in Extensive Welfare States? The Case of Germany

Cited by 3 publications

References 30 publications

Voluntary Giving and Economic Growth: Time Series Evidence for the US

Voluntary Giving and Economic Growth: Time Series Evidence for the US

Inequality in tax evasion: the case of the Spanish income tax

Tax-price elasticity of charitable donations – evidence from the German taxpayer panel

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