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Charity Donations and the Euro Introduction: Some Quasi-Experimental Evidence on Money Illusion

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Author Info
Kooreman, Peter () (University of Groningen and IZA Bonn)
Faber, Riemer (University of Groningen)
Hofmans, Heleen (University of Groningen)

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Abstract

We compare the revenues of a house-to-house collection for a charity before and after the introduction of the euro in a ceteris paribus setting. We find strong evidence of money illusion, supplementing earlier econometric, experimental, and survey evidence on its existence.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1318.

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Length: 7 pages
Date of creation: Sep 2004
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Handle: RePEc:iza:izadps:dp1318

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Related research
Keywords: money illusion; quasi-experiment; behavioral economics;

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Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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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.:
  1. Shafir, Eldar & Diamond, Peter & Tversky, Amos, 1997. "Money Illusion," The Quarterly Journal of Economics, MIT Press, vol. 112(2), pages 341-74, May.
  2. Ernst Fehr & Jean-Robert Tyran, 2001. "Does Money Illusion Matter?," American Economic Review, American Economic Association, vol. 91(5), pages 1239-1262, December. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Giam Pietro Cipriani & Diego Lubian & Angelo Zago, 2008. "Money Illusion: Are Economists Different?," Economics Bulletin, Economics Bulletin, vol. 1(3), pages 1-9. [Downloadable!]
  2. Ernst Fehr & Jean-Robert Tyran, . "Individual Irrationality and Aggregate Outcomes," IEW - Working Papers iewwp252, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  3. Thomas A. Eife, 2006. "Price setting behaviour and price setting regulations at the euro changeover," Bank of Estonia Working Papers 2006-06, Bank of Estonia, revised 12 Oct 2006. [Downloadable!]
  4. Michael Ehrmann, 2006. "Rational inattention, inflation developments and perceptions after the euro cash changeover," Working Paper Series 588, European Central Bank. [Downloadable!]
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This page was last updated on 2009-11-30.

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