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Modelling Charitable Donations to an Unexpected Natural Disaster: Evidence from the U.S. Panel Study of Income Dynamics

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Author Info
Brown, Sarah () (University of Sheffield)
Harris, Mark N. () (Monash University)
Taylor, Karl () (University of Sheffield)

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Abstract

Using household-level data, we explore the relationship between donations to the victims of the 2004 Indian Ocean tsunami disaster and other charitable donations. The empirical evidence suggests that donations specifically for the victims of the tsunami are positively associated with the amount previously donated to other charitable causes, which accords with complementary rather than substitution effects. This relationship exists when we decompose overall charitable donations into different types of philanthropy, with charitable contributions to caring, needy and religious organizations having the largest positive association with donations to the victims of the tsunami. When we explore the impact of donations to the victims of the tsunami on future donations to charity, however, our findings suggest an inverse relationship with the largest inverse association with donations to needy and caring organizations.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4424.

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Length: 34 pages
Date of creation: Sep 2009
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Handle: RePEc:iza:izadps:dp4424

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Related research
Keywords: charity; donations; system tobit; tobit;

Find related papers by JEL classification:
D19 - Microeconomics - - Household Behavior - - - Other
H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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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. Prema-chandra Athukorala & Budy P. Resosudarmo, 2005. "The Indian Ocean Tsunami: Economic Impact, Disaster Management and Lessons," Departmental Working Papers 2005-05, Australian National University, Economics RSPAS. [Downloadable!]
  2. Lankford, R Hamilton & Wyckoff, James H, 1991. "Modeling Charitable Giving Using a Box-Cox Standard Tobit Model," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 460-70, August. [Downloadable!] (restricted)
  3. Mikkel Barslund, 2007. "Estimation of Tobit Type Censored Demand Systems: A Comparison of Estimators," Discussion Papers 07-16, University of Copenhagen. Department of Economics. [Downloadable!]
  4. Craig E. Landry & Andreas Lange & John A. List & Michael K. Price & Nicholas G. Rupp, 2006. "Toward an Understanding of the Economics of Charity: Evidence from a Field Experiment," The Quarterly Journal of Economics, MIT Press, vol. 121(2), pages 747-782, May. [Downloadable!] (restricted)
    Other versions:
  5. Schokkaert, Erik, 2006. "The Empirical Analysis of Transfer Motives," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier. [Downloadable!] (restricted)
  6. 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. [Downloadable!]
  7. Philip H. Brown & Jessica H. Minty, 2008. "Media Coverage and Charitable Giving after the 2004 Tsunami," Southern Economic Journal, Southern Economic Association, vol. 75(1), pages 9-25, July.
  8. Dean Karlan & John A. List, 2007. "Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment," American Economic Review, American Economic Association, vol. 97(5), pages 1774-1793, December. [Downloadable!]
    Other versions:
  9. Sugden, Robert, 1982. "On the Economics of Philanthropy," Economic Journal, Royal Economic Society, vol. 92(366), pages 341-50, June. [Downloadable!] (restricted)
  10. Wilhelm, Mark Ottoni & Brown, Eleanor & Rooney, Patrick M. & Steinberg, Richard, 2008. "The intergenerational transmission of generosity," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2146-2156, October. [Downloadable!] (restricted)
  11. Auten, Gerald & Joulfaian, David, 1996. "Charitable contributions and intergenerational transfers," Journal of Public Economics, Elsevier, vol. 59(1), pages 55-68, January. [Downloadable!] (restricted)
  12. Kolm, Serge-Christophe, 2006. "Introduction to the Economics of Giving, Altruism and Reciprocity," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier. [Downloadable!] (restricted)
  13. Schwartz, Robert A, 1970. "Personal Philanthropic Contributions," Journal of Political Economy, University of Chicago Press, vol. 78(6), pages 1264-91, Nov.-Dec.. [Downloadable!] (restricted)
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