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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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  • Sarah Brown

    ()
    (Department of Economics, The University of Sheffield Author-Person=pbr160)

  • Mark N. Harris
  • Karl Taylor

    ()
    (Department of Economics, The University of Sheffield)

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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Bibliographic Info

Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2009015.

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Length: 35 pages
Date of creation: Sep 2009
Date of revision: Sep 2009
Handle: RePEc:shf:wpaper:2009015

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Keywords: Charity; Donations; System Tobit; Tobit;

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  1. 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.
  2. de Oliveira, Angela C.M. & Croson, Rachel T.A. & Eckel, Catherine, 2011. "The giving type: Identifying donors," Journal of Public Economics, Elsevier, vol. 95(5), pages 428-435.
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  7. 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.
  8. Riber, D.C. & Wilhelm, M.O., 1996. "Altruistic and Joy-of-Giving Motivations in Charitable Behavior," Papers 1-96-4, Pennsylvania State - Department of Economics.
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  16. Amemiya, Takeshi, 1974. "Multivariate Regression and Simultaneous Equation Models when the Dependent Variables Are Truncated Normal," Econometrica, Econometric Society, vol. 42(6), pages 999-1012, November.
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  19. Sugden, Robert, 1982. "On the Economics of Philanthropy," Economic Journal, Royal Economic Society, vol. 92(366), pages 341-50, June.
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  22. Huang, Ho-Chuan (River), 1999. "Estimation of the SUR Tobit model via the MCECM algorithm," Economics Letters, Elsevier, vol. 64(1), pages 25-30, July.
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Cited by:
  1. Ryo Ishida, . "Determinants of Charitable Giving to Unexpected Natural Disasters: Evidence from Two Major Earthquakes in Japan," Discussion papers ron256, Policy Research Institute, Ministry of Finance Japan.
  2. repec:ijp:wpaper:1305 is not listed on IDEAS
  3. Wodon, Quentin & Alleyne, Betty & Cong, Lin & Mulusa, Judy & Niami, Farhad, 2014. "Accounting for Trends in Charitable Tax Deductions: Framework and Application to the District of Columbia," MPRA Paper 45392, University Library of Munich, Germany.

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