Research Article

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

Table 4

Average marginal effects for total donation expenditures and by sector.

VariableTotal donationReligionHealthSocial servicesInternational

Price of donation−1.677** (0.187)−0.814** (0.332)−1.490** (0.170)−1.710** (0.249)−2.205** (0.504)
Age10.636** (0.049)0.551** (0.097)0.375** (0.046)0.491** (0.007)0.511** (0.145)
Age21.183** (0.056)1.088** (0.122)0.761** (0.053)0.809** (0.080)0.629** (0.174)
High education0.421** (0.044)0.173* (0.086)0.291** (0.039)0.243** (0.054)0.294 (0.163)
Income 10.193** (0.051)0.200* (0.087)0.218** (0.046)0.046 (0.060)0.171 (0.139)
Income 20.591** (0.054)0.225* (0.097)0.608** (0.054)0.382** (0.075)0.301 (0.164)
Religious attendance0.066** (0.012)0.037** (0.004)0.054** (0.008)0.062** (0.011)0.069 (0.014)
Employed0.117** (0.013)0.028** (0.004)0.079** (0.009)0.079** (0.012)0.083** (0.017)
Married0.149** (0.043)0.091 (0.081)−0.001 (0.039)−0.170** (0.056)0.155 (0.120)
Canadian born−0.071 (0.058)−0.080 (0.087)0.146** (0.048)0.026 (0.069)−0.277** (0.114)
Male−0.108** (0.039)0.009 (0.071)−0.110** (0.036)−0.064 (0.051)0.013 (0.123)
Volunteer0.208** (0.008)0.061** (0.003)0.128** (0.006)0.142** (0.008)0.183** (0.012)
Preschool children0.154** (0.063)0.114 (0.104)−0.051 (0.052)0.158* (0.075)0.281* (0.148)
School age children−0.124** (0.045)−0.094 (0.077)−0.220** (0.041)−0.141** (0.056)−0.471** (0.127)
Quebec−0.676** (0.049)−1.456** (0.082)−0.557** (0.048)−0.414** (0.063)−0.489** (0.168)
Atlantic−0.107* (0.052)−0.159 (0.088)−0.381** (0.045)−0.143* (0.062)−0.084 (0.186)
Prairies0.105* (0.055)0.245** (0.094)−0.093* (0.046)0.260** (0.068)0.412** (0.145)
British Columbia0.197** (0.065)0.528** (0.117)0.114* (0.058)0.584** (0.080)0.480** (0.145)
Wald statistic173.030.44361.7436.312.72
Rho−0.606 (0.034)−0.094 (0.142)−0.432 (0.048)−0.363 (0.055)−0.221 (0.129)

(1) Robust standard errors are reported in parentheses.
(2) **indicates the level of significance at less than 0.05 and *indicates the level of significance at less than 0.1 level.
(3) The estimates of the Heckman sample selection model are significantly superior to those of the standard tobit model (at 0.05 levels) for all equations except religion and international donation expenditures, as demonstrated by the Rho statistics. Accordingly, religion and International equations are estimated with a tobit model.