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On time and money donations

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Author Info

  • Cappellari, Lorenzo
  • Ghinetti, Paolo
  • Turati, Gilberto

Abstract

This paper investigates the importance of two forms of ‘impure’ altruism (“warm glow” and reputational concerns) as potential determinants of both time and money gifts. We first develop a comprehensive behavioral model which accounts for both types of donations, as well as for decisions about domestic and market hours of work. We then provide an empirical test of these drivers for giving using survey data for Italy. Results suggest that, according to the theoretical predictions, proxies for ‘impure’ altruism are important determinants of donations. Moreover, the unobservable determinants driving money and time donations are positively correlated, suggesting a certain degree of complementarity between the two decisions. Our findings also stress the importance of considering a behavioral model accounting for a full set of time and income uses to better characterize individual decisions to donate.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).

Volume (Year): 40 (2011)
Issue (Month): 6 ()
Pages: 853-867

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Handle: RePEc:eee:soceco:v:40:y:2011:i:6:p:853-867

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Web page: http://www.elsevier.com/locate/inca/620175

Related research

Keywords: Volunteering; Money donations; Household behavior; ‘Impure’ altruism;

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References

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  1. Bénabou, Roland & Tirole, Jean, 2003. "Incentives and Prosocial Behavior," IDEI Working Papers 389, Institut d'Économie Industrielle (IDEI), Toulouse, revised Jan 2006.
  2. Ellingsen, Tore & Johannesson, Magnus, 2006. "Time is not money," Working Paper Series in Economics and Finance 663, Stockholm School of Economics.
  3. Kooreman, P. & Kapteyn, A.J., 1987. "A disaggregrated analysis of the allocation of time within the household," Open Access publications from Tilburg University urn:nbn:nl:ui:12-364357, Tilburg University.
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  6. Khanna, Jyoti & Sandler, Todd, 2000. "Partners in giving:: The crowding-in effects of UK government grants," European Economic Review, Elsevier, vol. 44(8), pages 1543-1556, August.
  7. Naomi E. Feldman, 2010. "Time Is Money: Choosing between Charitable Activities," American Economic Journal: Economic Policy, American Economic Association, vol. 2(1), pages 103-30, February.
  8. Francois Vaillancourt, 1994. "To Volunteer or Not: Canada, 1987," Canadian Journal of Economics, Canadian Economics Association, vol. 27(4), pages 813-26, November.
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  19. Menchik, Paul L. & Weisbrod, Burton A., 1987. "Volunteer labor supply," Journal of Public Economics, Elsevier, vol. 32(2), pages 159-183, March.
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  22. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June.
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Citations

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Cited by:
  1. Thomas K. Bauer & Julia Bredtmann & Christoph M. Schmidt, 2012. "Time vs. Money – The Supply of Voluntary Labor and Charitable Donations across Europe," Ruhr Economic Papers 0349, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  2. Bruno, Bruna & Fiorillo, Damiano, 2012. "Why without pay? Intrinsic motivation in the unpaid labour supply," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 659-669.
  3. García-Valiñas, María A. & Macintyre, Alison & Torgler, Benno, 2012. "Volunteering, pro-environmental attitudes and norms," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 455-467.
  4. Damiano Fiorillo, 2010. "Volunteer work and domain satisfactions: Evidence from Italy," Discussion Papers 6_2010, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
  5. Bruna, Bruno & Damiano, Fiorillo, 2009. "Why without Pay? The Intrinsic Motivation between Investment and Consumption in Unpaid Labour Supply," CELPE Discussion Papers 111, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
  6. Bruna Bruno & Damiano Fiorillo, 2011. "Why without pay? Intrinsic motivation in unpaid labour supply," Discussion Papers 3_2011, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
  7. Huhtala, Anni, 2010. "Income effects and the inconvenience of private provision of public goods for bads: The case of recycling in Finland," Ecological Economics, Elsevier, vol. 69(8), pages 1675-1681, June.
  8. Damiano Fiorillo, 2009. "Do monetary rewards crowd out intrinsic motivations of volunteers? Some empirical evidence for Italian volunteers," Discussion Papers 3_2009, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
  9. Damiano, Fiorillo, 2008. "Offerta di Attivita' Gratuita in Italia: una analisi micro-econometrica," CELPE Discussion Papers 107, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.

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