Giving to Government: Voluntary Taxation in the Lab

35 Pages Posted: 18 Jun 2009 Last revised: 7 Mar 2013

See all articles by Sherry Xin Li

Sherry Xin Li

University of Texas at Dallas

Catherine C. Eckel

Texas A&M University

Philip J. Grossman

Monash University - Department of Economics

Tara Larson

University of Texas at Dallas

Date Written: May 31, 2009

Abstract

In the U.S., widespread complaints that taxes are too high exist alongside substantial voluntary donations to private charities whose missions parallel those of government agencies. We employ a "real donation" experiment to compare giving to government agencies and private charities with similar missions, for four different causes (cancer research, disaster relief, education enhancement, parks and wildlife) at three levels (national, state, and local). We find that individuals will give to government, paying voluntary taxes to support specific functions. Donations average 22 percent of an endowment to government, significantly lower than the 27 percent to private charities. The difference is influenced by cause, level, and perceptions of effectiveness and efficiency, as well as individual characteristics such as income and political affiliation.

Keywords: voluntary taxation, charitable giving

JEL Classification: H2, D64, C91

Suggested Citation

Li, Sherry Xin and Eckel, Catherine C. and Grossman, Philip J. and Larson, Tara, Giving to Government: Voluntary Taxation in the Lab (May 31, 2009). Journal of Public Economics, Vol. 101, No. 4, 2011, Available at SSRN: https://ssrn.com/abstract=1422143 or http://dx.doi.org/10.2139/ssrn.1422143

Sherry Xin Li (Contact Author)

University of Texas at Dallas ( email )

2601 North Floyd Road
Richardson, TX 75083
United States

Catherine C. Eckel

Texas A&M University ( email )

5201 University Blvd.
College Station, TX 77843-4228
United States

Philip J. Grossman

Monash University - Department of Economics ( email )

Wellington Road
Clayton, 3800
Australia
61399020052 (Phone)

Tara Larson

University of Texas at Dallas ( email )

2601 North Floyd Road
Richardson, TX 75083
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
239
Abstract Views
2,451
Rank
231,553
PlumX Metrics