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On Time and Money Donations

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Author Info

  • Lorenzo Cappellari

    ()
    (DISCE, Università Cattolica)

  • Paolo Ghinetti

    ()
    (DISCE, Università Cattolica)

  • Gilberto Turati

    ()
    (Dipartimento di Scienze Economiche e Finanziarie " G. Prato", Università di Torino)

Abstract

This paper investigates the determinants of time and money gifts. We first develop a behavioural model which accounts for both types of donations, as well as decisions about domestic and market hours of work. We then investigate the issue empirically, using survey data for Italy. Results suggest that, according to the theoretical predictions, proxies for “warm glow”, reputational concerns and (impure) altruism are important determinants of giving. Moreover, the unobservable determinants driving money and time donations are positively correlated, suggesting a certain degree of complementarity between the two decisions.

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File URL: http://www.unicatt.it/Istituti/EconomiaImpresaLavoro/Quaderni/ieil0047.pdf
File Function: First version, 2007
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Bibliographic Info

Paper provided by Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) in its series DISCE - Quaderni dell'Istituto di Economia dell'Impresa e del Lavoro with number ieil0047.

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Length: 37
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:ctc:serie4:ieil0047

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Web page: http://www.unicatt.it/Istituti/EconomiaImpresaLavoro
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Related research

Keywords: Volunteering; Money donations; Household behaviour.;

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References

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  1. Richard B. Freeman, 1996. "Working for Nothing: The Supply of Volunteer Labor," NBER Working Papers 5435, National Bureau of Economic Research, Inc.
  2. Ellingsen, Tore & Johannesson, Magnus, 2006. "Pride and Prejudice: The Human Side of Incentive Theory," CEPR Discussion Papers 5768, C.E.P.R. Discussion Papers.
  3. Andreoni, James & Vesterlund, Lise, 2001. "Which is the Fair Sex? Gender Differences in Altruism," Staff General Research Papers 1951, Iowa State University, Department of Economics.
  4. 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.
  5. Menchik, Paul L. & Weisbrod, Burton A., 1987. "Volunteer labor supply," Journal of Public Economics, Elsevier, vol. 32(2), pages 159-183, March.
  6. Roland Bénabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," Review of Economic Studies, Oxford University Press, vol. 70(3), pages 489-520.
  7. Kooreman, Peter & Kapteyn, Arie, 1987. "A Disaggregated Analysis of the Allocation of Time within the Household," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 223-49, April.
  8. Roland Bénabou & Jean Tirole, 2005. "Incentives and Prosocial Behavior," NBER Working Papers 11535, National Bureau of Economic Research, Inc.
  9. Steven N. Durlauf, 2002. "On the Empirics of Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 459-479, November.
  10. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
  11. Gerald E. Auten & Holger Sieg & Charles T. Clotfelter, 2002. "Charitable Giving, Income, and Taxes: An Analysis of Panel Data," American Economic Review, American Economic Association, vol. 92(1), pages 371-382, March.
  12. Ellingsen, Tore & Johannesson, Magnus, 2009. "Time is not money," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 96-102, October.
  13. Randolph, William C, 1995. "Dynamic Income, Progressive Taxes, and the Timing of Charitable Contributions," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 709-38, August.
  14. Harbaugh, William T., 1998. "What do donations buy?: A model of philanthropy based on prestige and warm glow," Journal of Public Economics, Elsevier, vol. 67(2), pages 269-284, February.
  15. 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.
  16. Francois Vaillancourt, 1994. "To Volunteer or Not: Canada, 1987," Canadian Journal of Economics, Canadian Economics Association, vol. 27(4), pages 813-26, November.
  17. Paul S. Carlin, 2001. "Evidence on the Volunteer Labor Supply of Married Women," Southern Economic Journal, Southern Economic Association, vol. 67(4), pages 801-824, April.
  18. 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.
  19. repec:ebl:ecbull:v:10:y:2002:i:1:p:1-14 is not listed on IDEAS
  20. Caitlin Knowles Myers & Jeffrey Carpenter, 2007. "Why Volunteer? Evidence on the Role of Altruism, Reputation, and Incentives," Middlebury College Working Paper Series 0712, Middlebury College, Department of Economics.
  21. Prendergast, Canice & Stole, Lars, 2001. "The non-monetary nature of gifts," European Economic Review, Elsevier, vol. 45(10), pages 1793-1810, December.
  22. Gronau, Reuben, 1977. "Leisure, Home Production, and Work-The Theory of the Allocation of Time Revisited," Journal of Political Economy, University of Chicago Press, vol. 85(6), pages 1099-1123, December.
  23. Brown, Eleanor & Lankford, Hamilton, 1992. "Gifts of money and gifts of time estimating the effects of tax prices and available time," Journal of Public Economics, Elsevier, vol. 47(3), pages 321-341, April.
  24. Walter O. Simmons & Rosemarie Emanuele, 2004. "Does Government Spending Crowd Out Donations of Time and Money?," Public Finance Review, , vol. 32(5), pages 498-511, September.
  25. James Andreoni & A. Abigail Payne, 2003. "Do Government Grants to Private Charities Crowd Out Giving or Fund-raising?," American Economic Review, American Economic Association, vol. 93(3), pages 792-812, June.
  26. Kathleen Day & Rose Annue Devlin, 1998. "The Payoff to Work without Pay: Volunteer Work as an Investment in Human Capital," Canadian Journal of Economics, Canadian Economics Association, vol. 31(5), pages 1179-1191, November.
  27. Duncan, Brian, 1999. "Modeling charitable contributions of time and money," Journal of Public Economics, Elsevier, vol. 72(2), pages 213-242, May.
  28. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-74, June.
  29. Kathleen M. Day & Rose Anne Devlin, 1996. "Volunteerism and Crowding Out: Canadian Econometric Evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 37-53, February.
  30. Charlene M. Kalenkoski & David C. Ribar & Leslie S. Stratton, 2005. "Parental Child Care in Single-Parent, Cohabiting, and Married-Couple Families: Time-Diary Evidence from the United Kingdom," American Economic Review, American Economic Association, vol. 95(2), pages 194-198, May.
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Citations

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Cited by:
  1. 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.
  2. 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.
  3. Bauer, Thomas K. & Bredtmann, Julia & Schmidt, Christoph M., 2013. "Time vs. money — The supply of voluntary labor and charitable donations across Europe," European Journal of Political Economy, Elsevier, vol. 32(C), pages 80-94.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.

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