Please use this identifier to cite or link to this item:
Bittschi, Benjamin
Borgloh, Sarah
Moessinger, Marc-Daniel
Year of Publication: 
Series/Report no.: 
ZEW Discussion Papers 16-024
We estimate the effects of income from various sources on charitable giving using administrative German income tax data. We demonstrate that charitable contributions are not uniformly affected by different income types. While business and capital income exhibit a positive effect, the remaining income sources do not influence charity on statistically signifcant levels. This exercise is not new and has been conducted for (at least) three different purposes: 1) Relying on the described results, a public finance researcher would state that business and capital income are more prone to tax evasion than the remaining income sources. 2) An entrepreneurship researcher would conclude that business owners are more generous than employees, and 3) a researcher testing the validity of the life cycle theory (or its behavioral counterpart) would refute the fungibility of income. In contrast, we argue that none of these approaches can answer the intended question if solicitation effects of fundraising or measurement error of the income sources are not taken into account. Applying a fixed effect poisson model, we demonstrate that under certain assumptions the results can have a meaningful interpretation.
tax evasion
entrepreneurial behavior
charitable giving
income fungibility
administrative data
fixed effects poisson model
Document Type: 
Working Paper

Files in This Item:
790.29 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.