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The Empirical Analysis of Transfer Motives

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Schokkaert, Erik

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Abstract

The empirical economic literature covers many different forms of pro-social behaviour going from anonymous charitable contributions to caring for an ageing parent or buying Christmas gifts. The chapter focuses on the meta-questions concerning the motivations underlying this behaviour. While the "public goods"-model of altruism has played a pivotal role in the economic work, the discussion in the chapter is structured around a simple list of motivations, derived from the psychological literature. Altruism (or empathy) is only one of the many motivations leading to voluntary transfers. Transfers may also follow from a feeling of duty or because the donor wants to obey social norms. They may be part of reciprocal arrangements, which finally are in the self-interest of all the parties involved. They may reflect pure materialistic egoism or a desire to gain social prestige. The survey of the empirical literature makes a distinction between one-way transfers where there is no real social interaction between the donor and the recipient and two-way transfers, i.e. interpersonal gifts that take place in a non-anonymous setting. The former refer to contributions of money and time to charities, the latter refer to interhousehold and intrafamily transfers. It is argued that the simple oppositions between "pure altruism" and "warm glow" or between "altruism" and "exchange" are insufficient, and that we should more explicitly think about how to distinguish the different "warm glow" or "exchange"-interpretations from one another. Traditional economic methods of "indirect testing" for motivational differences will probably be insufficient for this task. A better insight into the different motivations for pro-social behaviour is important for its own sake. It is also necessary for understanding the consequences of government intervention (the crowding-out effect) or the behaviour of charities.

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This chapter was published in: S. Kolm & Jean Mercier Ythier (ed.) , Elsevier, chapter 02, pages 127-181, 2006.

This item is provided by Elsevier in its series Handbook on the Economics of Giving, Reciprocity and Altruism with number 1-02.

Handle: RePEc:eee:givchp:1-02

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This chapter was published in the following book, which is listed on IDEAS:
S. Kolm & Jean Mercier Ythier (ed.), 2006. "Handbook on the Economics of Giving, Reciprocity and Altruism," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier, edition 1, volume 1, number 1, September. [Downloadable!] (restricted)
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Find related papers by JEL classification:
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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  1. Brown, Sarah & Harris, Mark N. & Taylor, Karl, 2009. "Modelling Charitable Donations to an Unexpected Natural Disaster: Evidence from the U.S. Panel Study of Income Dynamics," IZA Discussion Papers 4424, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Hannes Koppel & Günther G. Schulze, 2008. "Inefficient but effective? A field experiment on the effectiveness of direct and indirect transfer mechanisms," Discussion Paper Series 2, Department of International Economic Policy, University of Freiburg, revised Mar 2008. [Downloadable!]
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  3. Säve-Söderbergh, Jenny, 2005. "Who is Willing to Let Ethics Guide His Economic Decision-Making? Evidence from Individual Investments in Ethical Funds," Working Paper Series 7/2005, Swedish Institute for Social Research. [Downloadable!]
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