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Charitable donations by UK households: evidence from the Family Expenditure Survey

Andrew Michael Jones, John William Posnett

Open publisher page 140 citations

Abstract

This paper reports estimates based on both standard Tobit and generalized Tobit techniques of the determinants of charitable giving in the UK using 1984 Family Expenditure Survey data. This is the first such study using UK data. Separate estimates are presented of the determinants of participation and of the level of donations by giving households. Participation is seen to be sensitive to income, the tax-price of giving, and a range of demographic variables, while the level of donations varies primarily with income. Donations are found to be inelastic with respect to changes in disposable income.

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What this paper is about

This paper reports estimates based on both standard Tobit and generalized Tobit techniques of the determinants of charitable giving in the UK using 1984 Family Expenditure Survey data. This is the first such study using UK data. Separate estimates are presented of the determinants of participation and of the level of donations by giving households. Participation is seen to be sensitive to income, the tax-price of giving, and a range of demographic variables, while the level of donations varies primarily with income. Donations are found to be inelastic with respect to changes in disposable income.

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Available abstract

This paper reports estimates based on both standard Tobit and generalized Tobit techniques of the determinants of charitable giving in the UK using 1984 Family Expenditure Survey data. This is the first such study using UK data. Separate estimates are presented of the determinants of participation and of the level of donations by giving households. Participation is seen to be sensitive to income, the tax-price of giving, and a range of demographic variables, while the level of donations varies primarily with income. Donations are found to be inelastic with respect to changes in disposable income.

Key concepts: Tobit model, Economics, Consumer Expenditure Survey, Demographic economics, Consumer expenditure, Survey data collection, Engel curve, Labour economics

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