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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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  • Brown, Sarah
  • Harris, Mark N.
  • Taylor, Karl

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. This relationship exists when we decompose overall charitable donations into different types of philanthropy, with charitable contributions to caring and needy organisations having the largest positive association with donations to the victims of the tsunami. Furthermore, when we explore the impact of donations to the victims of the tsunami on future donations to charity, there is evidence of a positive relationship with the largest association with donations to caring and needy organisations. Hence, there is no evidence to suggest that unplanned spending on donations to an unforeseen natural disaster diverts future expenditure away from donations to other charitable causes.

Suggested Citation

  • Brown, Sarah & Harris, Mark N. & Taylor, Karl, 2012. "Modelling charitable donations to an unexpected natural disaster: Evidence from the U.S. Panel Study of Income Dynamics," Journal of Economic Behavior & Organization, Elsevier, vol. 84(1), pages 97-110.
  • Handle: RePEc:eee:jeborg:v:84:y:2012:i:1:p:97-110
    DOI: 10.1016/j.jebo.2012.08.005
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Brown, Sarah & Greene, William H. & Harris, Mark N. & Taylor, Karl, 2015. "An inverse hyperbolic sine heteroskedastic latent class panel tobit model: An application to modelling charitable donations," Economic Modelling, Elsevier, vol. 50(C), pages 228-236.
    2. Krasteva, Silvana & Yildirim, Huseyin, 2016. "Information, competition, and the quality of charities," Journal of Public Economics, Elsevier, vol. 144(C), pages 64-77.
    3. repec:eee:jeborg:v:136:y:2017:i:c:p:45-62 is not listed on IDEAS
    4. Ryo Ishida, "undated". "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.
    5. Ek, Claes, 2015. "Prosocial Behavior and Policy Spillovers: A Multi-Activity Approach," Working Papers 2015:26, Lund University, Department of Economics, revised 11 Sep 2017.
    6. Ek, Claes, 2015. "Some Causes are More Equal than Others? Behavioral Spillovers in Charitable Giving," Working Papers 2015:29, Lund University, Department of Economics.
    7. Meer, Jonathan, 2017. "Does fundraising create new giving?," Journal of Public Economics, Elsevier, vol. 145(C), pages 82-93.
    8. Brown, Sarah & Taylor, Karl, 2015. "Charitable Behaviour and the Big Five Personality Traits: Evidence from UK Panel Data," IZA Discussion Papers 9318, Institute for the Study of Labor (IZA).
    9. Pierre-Guillaume Méon & Philip Verwimp, 2016. "Pro-social behavior after a disaster: parochial or universal? Evidence from a natural experiment in Belgium," Working Papers CEB 16-054, ULB -- Universite Libre de Bruxelles.
    10. Michael Insler & Bryce McMurrey & Alexander F. McQuoid, 2016. "From Broken Windows to Broken Bonds: Militarized Police and Social Fragmentation," Departmental Working Papers 53, United States Naval Academy Department of Economics.
    11. Tiefenbach, Tim & Kohlbacher, Florian, 2015. "Disasters, donations, and tax law changes: Disentangling effects on subjective well-being by exploiting a natural experiment," Journal of Economic Psychology, Elsevier, vol. 50(C), pages 94-112.
    12. 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.
    13. repec:ijp:wpaper:1305 is not listed on IDEAS

    More about this item

    Keywords

    Charity; Donations; System tobit; Tobit;

    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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