Research Article

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

Table 6

Hypothesis tests of the equivalence of price elasticities of donation expenditures.

Hypothesis:
equivalent elasticity among sectors
Level of significance
Total donationReligionHealthSocial serviceInternational

Unit elasticity *** X * * *
Elasticity for total donation expenditures *** *** *** ***
Elasticity for religious donation expenditures *** *** ***
Elasticity for health donation expenditures *** ***
Elasticity for social service donation expenditures ***

All hypothesis test results are chi-square results. The null hypothesis of unit price elasticity is rejected for total donation expenditure and for each sector, except religion where the elasticity is indistinguishable from one. The null hypothesis of equivalent elasticity is rejected for total donations and across all sectors.
X: statistically indistinguishable. ***indicates statistically distinguishable at the .01 level and *indicates distinguishable at the 0.10 level.