TY  - JOUR
AU  - Feenberg,Daniel R.
TI  - Identification in Tax-Price Regression Models: The Case of Charitable Giving
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 988
PY  - 1982
Y2  - September 1982
UR  - http://www.nber.org/papers/w0988
L1  - http://www.nber.org/papers/w0988.pdf
N1  - Author contact info:
Daniel R. Feenberg
National Bureau of Economic Research
1050 Massachusetts Avenue
Cambridge, MA 02138
Tel: 617/588-0343
Fax: 617/868-2742
E-Mail: feenberg@nber.org
AB  - In this paper we use an instrumental variable estimator to exploit sources of independent variation, which allows unbiased estimation of the tax-price elasticity under more general conditions. The estimator is applied to the demand for charitable giving. A charitable giving equation is an appropriate test for this procedure because it represents the purest case of a tax-price coefficient. That is, taxes are the sole source of variance in the price. The deduction is also an important policy issue. In 1982, 1.8 percent of gross income was deducted for this reason, about as much as the capital gains deduction.
ER  -