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Charity and the bequests motive: evidence from seventeenth century wills

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Author Info
Leslie McGranahan
Abstract

This paper researches the motivations for charitable bequests by looking at gifts to the poor in the wills of 1357 testators who died in Suffolk, England in the 1620's and 1630's. I find that wealth, religiosity, and the presence of family and friends influence testator generosity. The finding that wealthier, more religious individuals, and those with fewer children give more to the poor support an altruistic model of testator utility. However, the finding that individuals who give to more people outside of their immediate families are more likely to give to the poor contradicts the simple altruism model. This result is shown to be consistent with a model that suggests that charitable giving is partly driven by the approbation friends and families grant charitable behavior.

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Paper provided by Federal Reserve Bank of Chicago in its series Working Paper Series with number WP-98-25.

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Date of creation: 1998
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Handle: RePEc:fip:fedhwp:wp-98-25

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Keywords: Charitable bequests;

References listed on IDEAS
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  1. Gary S. Becker, 1974. "A Theory of Social Interactions," NBER Working Papers 0042, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Boskin, Michael J., 1976. "Estate taxation and charitable bequests," Journal of Public Economics, Elsevier, vol. 5(1-2), pages 27-56. [Downloadable!] (restricted)
  3. Joseph G. Altonji & Fumio Hayashi & Laurence J. Kotlikoff, 1993. "Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data," NBER Working Papers 3046, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December. [Downloadable!] (restricted)
  5. Auten, Gerald & Joulfaian, David, 1996. "Charitable contributions and intergenerational transfers," Journal of Public Economics, Elsevier, vol. 59(1), pages 55-68, January. [Downloadable!] (restricted)
  6. Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1985. "The Strategic Bequest Motive," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1045-76, December. [Downloadable!] (restricted)
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  7. Hurd, Michael D, 1987. "Savings of the Elderly and Desired Bequests," American Economic Review, American Economic Association, vol. 77(3), pages 298-312, June.
  8. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May. [Downloadable!] (restricted)
  9. Menchik, Paul L, 1980. "Primogeniture, Equal Sharing, and the U. S. Distribution of Wealth," The Quarterly Journal of Economics, MIT Press, vol. 94(2), pages 299-316, March. [Downloadable!] (restricted)
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