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Altruism from the house: the impact of home equity on charitable giving

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  • Chau Do
  • Irina Paley

Abstract

This paper exploits the dramatic increase in house prices in early 2000 and the panel nature of the data to investigate the effect of home equity on charitable giving. Using the Panel Study of Income Dynamics from 2001 to 2007, we find that a 10% increase in home equity increases a household’s contributions to charity by almost 1%. This is in contrast to the effect of non-housing wealth, which we estimate to be one tenth the magnitude. Our results are consistent with the consumption literature that reports a distinct effect of housing wealth that is significantly larger than that of financial wealth. Copyright Springer Science+Business Media, LLC (outside the USA) 2012

Suggested Citation

  • Chau Do & Irina Paley, 2012. "Altruism from the house: the impact of home equity on charitable giving," Review of Economics of the Household, Springer, vol. 10(3), pages 375-393, September.
    • Handle: RePEc:kap:reveho:v:10:y:2012:i:3:p:375-393
    DOI: 10.1007/s11150-011-9123-8
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    1. Joseph J. Sabia & Joseph P. Price & H. Elizabeth Peters & Reginald Covington, 2018. "The effect on teenage childbearing on social capital development: new evidence on civic engagement," Review of Economics of the Household, Springer, vol. 16(3), pages 629-659, September.

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    More about this item

    Keywords

    Housing; Charity; D10; D64;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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