Advanced Search
MyIDEAS: Login to save this paper or follow this series

Who is Willing to Let Ethics Guide His Economic Decision-Making? Evidence from Individual Investments in Ethical Funds

Contents:

Author Info

  • Säve-Söderbergh, Jenny

    ()
    (Swedish Institute for Social Research, Stockholm University)

Abstract

Recent economics literature has devoted attention towards motives beyond the typical selfish norm for economic decision-making. Yet, it still remains a puzzle who allows such considerations to govern their behavior. This paper contributes by empirically identifying some features which differentiate individuals who choose to bear the cost of ethically guided economic decision-making from others. Using unique Swedish data on individual pension portfolio choices, we find that education, the choice of an occupation that is committed to taking care of others, actively joining a group working for a common cause, clearly predict the choice of an ethical screen for individual investments.In contrast to previous findings on altruism, income, financial wealth and age do not govern the decision. The results therefore suggest that investing ethically is typically a choice of principles.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sofi.su.se/content/1/c6/03/09/74/WP05no7.pdf
Our checks indicate that this address may not be valid because: 500 Can't connect to webb.polopoly.it.su.se:80 (Bad hostname) (http://www.sofi.su.se/content/1/c6/03/09/74/WP05no7.pdf [301 Moved Permanently]--> http://webb.polopoly.it.su.se/content/1/c6/03/09/74/WP05no7.pdf). If this is indeed the case, please notify (Lena Lindahl)
Download Restriction: no

Bibliographic Info

Paper provided by Swedish Institute for Social Research in its series Working Paper Series with number 7/2005.

as in new window
Length: 37 pages
Date of creation: 24 Nov 2005
Date of revision:
Publication status: Published as Säve-Söderbergh, Jenny, 'Who is Willing to Let Ethics Guide His Economic Decision-Making? Evidence from Individual Investments in Ethical Funds' in Economics Letters, 2010, pages 270-272.
Handle: RePEc:hhs:sofiwp:2005_007

Contact details of provider:
Postal: SOFI, Stockholm University, SE-10691 Stockholm, Sweden
Phone: (0)8 - 16 32 48
Fax: (0)8 - 15 46 70
Web page: http://www.sofi.su.se/
More information through EDIRC

Related research

Keywords: Socially Responsible Investing; Altruism; Individual Financial Investments; Individual Decision-Making; Ethics and Norms;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Freeman, Richard B, 1997. "Working for Nothing: The Supply of Volunteer Labor," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages S140-66, January.
  2. Andrei Shleifer, 2004. "Does Competition Destroy Ethical Behavior?," NBER Working Papers 10269, National Bureau of Economic Research, Inc.
  3. Armin Falk, 2004. "Charitable Giving as a Gift Exchange – Evidence from a Field Experiment (new title: Gift-Exchange in the Field)," CESifo Working Paper Series 1218, CESifo Group Munich.
  4. Engstr M, Stefan & Westerberg, Anna, 2003. "Which individuals make active investment decisions in the new Swedish pension system?," Journal of Pension Economics and Finance, Cambridge University Press, vol. 2(03), pages 225-245, November.
  5. Urs Fischbacher & Simon Gaechter & Ernst Fehr, . "Are People Conditionally Cooperative? Evidence from a Public Goods Experiment," IEW - Working Papers 016, Institute for Empirical Research in Economics - University of Zurich.
  6. 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.
  7. Lewis, Alan & Cullis, John, 1990. "Ethical investments: Preferences and morality," Journal of Behavioral Economics, Elsevier, vol. 19(4), pages 395-411.
  8. Dufwenberg, Martin & Muren, Astri, 2002. "Discrimination by Gender and Social Distance," Research Papers in Economics 2002:2, Stockholm University, Department of Economics.
  9. Guiso, Luigi & Jappelli, Tullio & Terlizzese, Daniele, 1994. "Income Risk, Borrowing Constraints and Portfolio Choice," CEPR Discussion Papers 888, C.E.P.R. Discussion Papers.
  10. Becker, Gary S, 1974. "A Theory of Social Interactions," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1063-93, Nov.-Dec..
  11. Falk, Armin, 2004. "Charitable Giving as a Gift Exchange: Evidence from a Field Experiment," IZA Discussion Papers 1148, Institute for the Study of Labor (IZA).
  12. Laitner, John & Juster, F Thomas, 1996. "New Evidence on Altruism: A Study of TIAA-CREF Retirees," American Economic Review, American Economic Association, vol. 86(4), pages 893-908, September.
  13. Gary E. Bolton & Rami Zwick & Elena Katok, 1998. "Dictator game giving: Rules of fairness versus acts of kindness," International Journal of Game Theory, Springer, vol. 27(2), pages 269-299.
  14. Alicia H. Munnell & Annika Sunden, . "Investment Practices of State and Local Pension Funds: Implications for Social Security Reform," Pension Research Council Working Papers 99-9, Wharton School Pension Research Council, University of Pennsylvania.
  15. Schokkaert, Erik, 2006. "The Empirical Analysis of Transfer Motives," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
  16. Eckel, Catherine C. & Grossman, Philip J., 2008. "Differences in the Economic Decisions of Men and Women: Experimental Evidence," Handbook of Experimental Economics Results, Elsevier.
  17. Engström, Stefan & Westerberg, Anna, 2003. "Which individuals make active investment decisions in the new Swedish pension system?," Working Paper Series in Economics and Finance 527, Stockholm School of Economics, revised 21 Jul 2003.
  18. Plantinga, Auke & Scholtens, Bert, 2001. "Socially responsible investing and management style of mutual funds in the euronext stock markets," Research Report 01E17, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  19. Henrik Cronqvist & Richard H. Thaler, 2004. "Design Choices in Privatized Social-Security Systems: Learning from the Swedish Experience," American Economic Review, American Economic Association, vol. 94(2), pages 424-428, May.
  20. Leslie Moscow McGranahan, 2000. "Charity and the Bequest Motive: Evidence from Seventeenth-Century Wills," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1270-1291, December.
  21. Harbaugh, William T, 1998. "The Prestige Motive for Making Charitable Transfers," American Economic Review, American Economic Association, vol. 88(2), pages 277-82, May.
  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.
  23. Bolton, Gary E. & Katok, Elena, 1995. "An experimental test for gender differences in beneficent behavior," Economics Letters, Elsevier, vol. 48(3-4), pages 287-292, June.
  24. Auten, Gerald & Joulfaian, David, 1996. "Charitable contributions and intergenerational transfers," Journal of Public Economics, Elsevier, vol. 59(1), pages 55-68, January.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:hhs:sofiwp:2005_007. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lena Lindahl).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.