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ISRN Economics
Volume 2012 (2012), Article ID 421789, 6 pages
http://dx.doi.org/10.5402/2012/421789
Research Article

Price Elasticities of Charitable Giving across Donation Sectors in Canada: Is the Tax Incentive Effective?

Department of Economics, Thompson Rivers University, 900 McGill Road, Kamloops, BC, Canada V2C 0C8

Received 15 November 2012; Accepted 4 December 2012

Academic Editors: M. T. Leung and K. P. Upadhyaya

Copyright © 2012 Belayet Hossain and Laura Lamb. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

The effectiveness of tax incentives on charitable donation expenditures in Canada is explored, and the analysis is extended to compare the effectiveness across different donation sectors. Price elasticities are estimated with data from the 2007 Canada Survey of Giving, Volunteering and Participating. Results suggest that specific charitable sectors are affected differently by Canada’s tax credit system. The findings have implications for public policy.