Tax deduction of charitable donations is treasury efficient if it generates at least as much in additional donations as the government forgoes in revenue. Yet, the vital measure is the value of the public goods that donations produce. Thus, we reevaluate the efficiency of the tax deduction.Our...

Government policy gives environmental groups, along with every qualified nonprofit, favorable and identical tax treatment, including organizational exemptions and individual tax deductibility of contributions. We suggest using an alternative approach, one of differential deductibility. We base...