Tax-price elasticities of charitable giving and selection of reporting: panel study of South Korea
利用2014年韩国税改的外生变化，提出基于意向治疗分析的估计方法，纠正未报告捐赠和自选择偏差，发现税收价格弹性为-3.5，表明税改减少了捐赠总额，应扩大税收激励。
Abstract In this study, we estimate the tax-price elasticity of charitable giving and address the bias caused by the existence of unreported donations and self-selection regarding reporting on giving. To eliminate this bias, we propose a simple estimation method based on intention-to-treat analysis. Using our proposed method and the exogenous variation in tax incentives in the 2014 South Korean tax reform, we estimate the price elasticity to be −3.5 for the amount of total giving, which is more elastic than that in the standard results that do not account for unreported donations and self-selection. This result implies that the 2014 tax reform reduced the total amount of giving and that tax incentives should be expanded.