| Testing for altruism and social pressure in charitable giving. | |
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MedLine Citation:
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PMID: 22448394 Owner: HMD Status: In-Process |
Abstract/OtherAbstract:
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Every year, 90% of Americans give money to charities. Is such generosity necessarily welfare enhancing for the giver? We present a theoretical framework that distinguishes two types of motivation: individuals like to give, for example, due to altruism or warm glow, and individuals would rather not give but dislike saying no, for example, due to social pressure. We design a door-to-door fund-raiser in which some households are informed about the exact time of solicitation with a flyer on their doorknobs. Thus, they can seek or avoid the fund-raiser. We find that the flyer reduces the share of households opening the door by 9% to 25% and, if the flyer allows checking a Do Not Disturb box, reduces giving by 28% to 42%. The latter decrease is concentrated among donations smaller than $10. These findings suggest that social pressure is an important determinant of door-to-door giving. Combining data from this and a complementary field experiment, we structurally estimate the model. The estimated social pressure cost of saying no to a solicitor is $3.80 for an in-state charity and $1.40 for an out-of-state charity. Our welfare calculations suggest that our door-to-door fund-raising campaigns on average lower the utility of the potential donors. |
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Authors:
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Stefano DellaVigna; John A List; Ulrike Malmendier |
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Publication Detail:
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Type: Journal Article |
Journal Detail:
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Title: The quarterly journal of economics Volume: 127 ISSN: 0033-5533 ISO Abbreviation: Q J Econ Publication Date: 2012 |
Date Detail:
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Created Date: 2012-01-31 Completed Date: - Revised Date: - |
Medline Journal Info:
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Nlm Unique ID: 9879565 Medline TA: Q J Econ Country: United States |
Other Details:
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Languages: eng Pagination: 1-56 Citation Subset: Q |
Affiliation:
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University of California, Berkeley, and National Bureau of Economic Research. |
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From MEDLINE®/PubMed®, a database of the U.S. National Library of Medicine
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