Previous studies on charitable giving usually estimate the effect of tax price and income on charitable giving. In this paper, I find a new behavioral response of individuals to their income changes. Specifically, I introduce a model of charitable giving with reference-dependent preferences of...

Unlike most other taxes that are levied on most individuals or corporations, the estate tax is levied on a small number of very large estates. This divides taxpayers sharply into two groups -- those who have experience of having paid it before and those who don' t. Given the nature and the rate...

Interest groups lobby politicians in various ways to influence their policy decisions, especially, their voting decisions in the legislature. Most, if not all, of the studies on this issue examine "pre-vote" lobbying activities of interest groups that occur before politicians vote in the...

This paper studies the effect of a politician's ideological strength on campaign contributions that the politician receives from interest groups. If interest groups care mainly about current, or short-run, policy outcomes, they will make campaign contributions to ideologically neutral...