Philanthropy in a Secular Society

52 Pages Posted: 12 Apr 2016

See all articles by Benjamin Bittschi

Benjamin Bittschi

ZEW – Leibniz Centre for European Economic Research

Sarah Borgloh

ZEW – Leibniz Centre for European Economic Research

Berthold U. Wigger

Karlsruhe Institute of Technology

Date Written: February 2016

Abstract

In this study we investigate the relationship between religious and charitable giving. We test how income, the tax-price of giving and the German church tax, differently affect charitable donations of church members, individuals leaving church and non-church members. We find crowding in between the church tax and charitable giving for church members, but not for the church-leavers. In contrast to church members, donations of church-leavers and non-members are also highly responsive to the tax deductibility. Additionally, non-donors exhibit a significantly increased probability of leaving church compared to donors. Finally, we demonstrate that leaving church increases donations on the extensive margin but decrease giving along the intensive margin.

Keywords: Charitable giving, secularization, church tax, Germany, fixed-effects poisson model

JEL Classification: H24, H41, Z12

Suggested Citation

Bittschi, Benjamin and Borgloh, Sarah and Wigger, Berthold U., Philanthropy in a Secular Society (February 2016). ZEW - Centre for European Economic Research Discussion Paper No. 16-021, Available at SSRN: https://ssrn.com/abstract=2762282 or http://dx.doi.org/10.2139/ssrn.2762282

Benjamin Bittschi (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Sarah Borgloh

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Berthold U. Wigger

Karlsruhe Institute of Technology ( email )

Kaiserstraße 12
Karlsruhe, Baden Württemberg 76131
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
30
Abstract Views
516
PlumX Metrics