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Altruism and Impatience: The Role of Time Preferences in Donation Choices

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  • Dottori, Davide
  • Giannetti, Caterina

Abstract

Relying on a quasi-experimental setting and a sample of Italian households, we study the role of time preferences on donation choices. Specifically, we apply the generalized propensity score methodology finding that both the amount and the probability of donating (i.e., altruism) vary non-monotonically with impatience in intertemporal choice, declining at higher levels of impatience. We then provide a theoretical model whose predictions are consistent, under fairly general conditions, with these empirical findings. Consistent with previous experimental evidence, these results support the view that psychological discounting matters for altruistic behaviour.

Suggested Citation

  • Dottori, Davide & Giannetti, Caterina, 2020. "Altruism and Impatience: The Role of Time Preferences in Donation Choices," Review of Behavioral Economics, now publishers, vol. 7(4), pages 337–377-3, December.
  • Handle: RePEc:now:jnlrbe:105.00000128
    DOI: 10.1561/105.00000128
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    More about this item

    Keywords

    Two-limit Tobit; generalized propensity score; quasi-experiment; altruism; discounting;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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