IDEAS home Printed from https://ideas.repec.org/p/ctc/serie4/ieil0047.html
   My bibliography  Save this paper

On Time and Money Donations

Author

Listed:
  • Lorenzo Cappellari

    () (DISCE, Università Cattolica)

  • Paolo Ghinetti

    () (DISCE, Università Cattolica)

  • Gilberto Turati

    () (Dipartimento di Scienze Economiche e Finanziarie " G. Prato", Università di Torino)

Abstract

This paper investigates the determinants of time and money gifts. We first develop a behavioural model which accounts for both types of donations, as well as decisions about domestic and market hours of work. We then investigate the issue empirically, using survey data for Italy. Results suggest that, according to the theoretical predictions, proxies for “warm glow”, reputational concerns and (impure) altruism are important determinants of giving. Moreover, the unobservable determinants driving money and time donations are positively correlated, suggesting a certain degree of complementarity between the two decisions.

Suggested Citation

  • Lorenzo Cappellari & Paolo Ghinetti & Gilberto Turati, 2007. "On Time and Money Donations," DISCE - Quaderni dell'Istituto di Economia dell'Impresa e del Lavoro ieil0047, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    • Handle: RePEc:ctc:serie4:ieil0047
    as

    Download full text from publisher

    File URL: http://www.unicatt.it/Istituti/EconomiaImpresaLavoro/Quaderni/ieil0047.pdf
    File Function: First version, 2007
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Duncan, Brian, 1999. "Modeling charitable contributions of time and money," Journal of Public Economics, Elsevier, vol. 72(2), pages 213-242, May.
    2. Paul S. Carlin, 2001. "Evidence on the Volunteer Labor Supply of Married Women," Southern Economic Journal, Southern Economic Association, vol. 67(4), pages 801-824, April.
    3. Harbaugh, William T., 1998. "What do donations buy?: A model of philanthropy based on prestige and warm glow," Journal of Public Economics, Elsevier, vol. 67(2), pages 269-284, February.
    4. Jean Tirole & Roland Bénabou, 2006. "Incentives and Prosocial Behavior," American Economic Review, American Economic Association, vol. 96(5), pages 1652-1678, December.
    5. Francois Vaillancourt, 1994. "To Volunteer or Not: Canada, 1987," Canadian Journal of Economics, Canadian Economics Association, vol. 27(4), pages 813-826, November.
    6. Gronau, Reuben, 1977. "Leisure, Home Production, and Work-The Theory of the Allocation of Time Revisited," Journal of Political Economy, University of Chicago Press, vol. 85(6), pages 1099-1123, December.
    7. Carpenter, Jeffrey P. & Myers, Caitlin Knowles, 2007. "Why Volunteer? Evidence on the Role of Altruism, Reputation, and Incentives," IZA Discussion Papers 3021, Institute of Labor Economics (IZA).
    8. Steven N. Durlauf, 2002. "On the Empirics of Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 459-479, November.
    9. Randolph, William C, 1995. "Dynamic Income, Progressive Taxes, and the Timing of Charitable Contributions," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 709-738, August.
    10. James Andreoni & Lise Vesterlund, 2001. "Which is the Fair Sex? Gender Differences in Altruism," The Quarterly Journal of Economics, Oxford University Press, vol. 116(1), pages 293-312.
    11. Khanna, Jyoti & Sandler, Todd, 2000. "Partners in giving:: The crowding-in effects of UK government grants," European Economic Review, Elsevier, vol. 44(8), pages 1543-1556, August.
    12. Ellingsen, Tore & Johannesson, Magnus, 2009. "Time is not money," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 96-102, October.
    13. Kooreman, Peter & Kapteyn, Arie, 1987. "A Disaggregated Analysis of the Allocation of Time within the Household," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 223-249, April.
    14. Naomi E. Feldman, 2010. "Time Is Money: Choosing between Charitable Activities," American Economic Journal: Economic Policy, American Economic Association, vol. 2(1), pages 103-130, February.
    15. 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.
    16. Tore Ellingsen & Magnus Johannesson, 2008. "Pride and Prejudice: The Human Side of Incentive Theory," American Economic Review, American Economic Association, vol. 98(3), pages 990-1008, June.
    17. Charlene M. Kalenkoski & David C. Ribar & Leslie S. Stratton, 2005. "Parental Child Care in Single-Parent, Cohabiting, and Married-Couple Families: Time-Diary Evidence from the United Kingdom," American Economic Review, American Economic Association, vol. 95(2), pages 194-198, May.
    18. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    19. Walter O. Simmons & Rosemarie Emanuele, 2004. "Does Government Spending Crowd Out Donations of Time and Money?," Public Finance Review, , vol. 32(5), pages 498-511, September.
    20. Freeman, Richard B, 1997. "Working for Nothing: The Supply of Volunteer Labor," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 140-166, January.
    21. repec:ebl:ecbull:v:10:y:2002:i:1:p:1-14 is not listed on IDEAS
    22. Roland Bénabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," Review of Economic Studies, Oxford University Press, vol. 70(3), pages 489-520.
    23. Prendergast, Canice & Stole, Lars, 2001. "The non-monetary nature of gifts," European Economic Review, Elsevier, vol. 45(10), pages 1793-1810, December.
    24. Kathleen Day & Rose Annue Devlin, 1998. "The Payoff to Work without Pay: Volunteer Work as an Investment in Human Capital," Canadian Journal of Economics, Canadian Economics Association, vol. 31(5), pages 1179-1191, November.
    25. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    26. James Andreoni & A. Abigail Payne, 2003. "Do Government Grants to Private Charities Crowd Out Giving or Fund-raising?," American Economic Review, American Economic Association, vol. 93(3), pages 792-812, June.
    27. Duncan Boldy, 1999. "Contribution," World Scientific Book Chapters, in: V De Angelis & N Ricciardi & G Storchi (ed.),Monitoring, Evaluating, Planning Health Services, chapter 25, pages 261-262, World Scientific Publishing Co. Pte. Ltd..
    28. Brown, Eleanor & Lankford, Hamilton, 1992. "Gifts of money and gifts of time estimating the effects of tax prices and available time," Journal of Public Economics, Elsevier, vol. 47(3), pages 321-341, April.
    29. Menchik, Paul L. & Weisbrod, Burton A., 1987. "Volunteer labor supply," Journal of Public Economics, Elsevier, vol. 32(2), pages 159-183, March.
    30. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-474, June.
    31. Kathleen M. Day & Rose Anne Devlin, 1996. "Volunteerism and Crowding Out: Canadian Econometric Evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 37-53, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shibly Shahrier & Koji Kotani, 2019. "Natural disaster mitigation through voluntary donations in a developing country: the case of Bangladesh," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(1), pages 37-60, January.
    2. Bruno, Bruna & Fiorillo, Damiano, 2012. "Why without pay? Intrinsic motivation in the unpaid labour supply," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 659-669.
    3. Shibly Shahrier & Koji Kotani, 2016. "Labor Donation Or Money Donation? Pro-Sociality On Prevention Of Natural Disasters In A Case Of Cyclone Aila, Bangladesh," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-26, March.
    4. repec:zbw:rwirep:0349 is not listed on IDEAS
    5. Marcus Dittrich & Bianka Mey, 2015. "Gender differences in volunteer activities: Evidence from German survey data," Economics Bulletin, AccessEcon, vol. 35(1), pages 349-360.
    6. Bruna, Bruno & Damiano, Fiorillo, 2009. "Why without Pay? The Intrinsic Motivation between Investment and Consumption in Unpaid Labour Supply," CELPE Discussion Papers 111, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
    7. Florence Neymotin, 2016. "Individuals and Communities: the Importance of Neighbors Volunteering," Journal of Labor Research, Springer, vol. 37(2), pages 149-178, June.
    8. Damiano Fiorillo, 2009. "Offerta di attivita` gratuita in Italia: un’analisi micro-econometrica," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 117(1), pages 23-59.
    9. Backus, Peter, 2010. "Is charity a homogeneous good?," Economic Research Papers 270773, University of Warwick - Department of Economics.
    10. Sarah Brown & Karl Taylor, 2019. "Charitable Behaviour and Political Ideology: Evidence for the UK," Working Papers 2019002, The University of Sheffield, Department of Economics.
    11. Backus, Peter, 2010. "Is charity a homogeneous good?," The Warwick Economics Research Paper Series (TWERPS) 951, University of Warwick, Department of Economics.
    12. 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).
    13. Damiano Fiorillo, 2011. "Do Monetary Rewards Crowd Out The Intrinsic Motivation Of Volunteers? Some Empirical Evidence For Italian Volunteers," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 82(2), pages 139-165, June.
    14. Anastasia Danilov & Timo Vogelsang, 2016. "Time for helping," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 2(1), pages 36-47, May.
    15. Bauer, Thomas K. & Bredtmann, Julia & Schmidt, Christoph M., 2013. "Time vs. money — The supply of voluntary labor and charitable donations across Europe," European Journal of Political Economy, Elsevier, vol. 32(C), pages 80-94.
    16. Damiano Fiorillo, 2011. "Volunteer work and domain satisfactions: evidence from Italy," International Journal of Social Economics, Emerald Group Publishing, vol. 39(1/2), pages 97-124, December.
    17. Jakub Dostál, 2020. "Revealed value of volunteering: A volunteer centre network," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(2), pages 319-345, June.
    18. Guttman, Joel M. & Goette, Lorenz, 2015. "Reputation, volunteering, and trust: Minimizing reliance on taste-based explanations," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 375-386.
    19. Ekaterina Melnik & Jean-Benoît Zimmermann, 2015. "The We and the I: The Logic of Voluntary Associations," Working Papers halshs-01109609, HAL.
    20. Huhtala, Anni, 2010. "Income effects and the inconvenience of private provision of public goods for bads: The case of recycling in Finland," Ecological Economics, Elsevier, vol. 69(8), pages 1675-1681, June.
    21. García-Valiñas, María A. & Macintyre, Alison & Torgler, Benno, 2012. "Volunteering, pro-environmental attitudes and norms," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 455-467.

    More about this item

    Keywords

    Volunteering; Money donations; Household behaviour.;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • D1 - Microeconomics - - Household Behavior

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ctc:serie4:ieil0047. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lorenzo Cappellari). General contact details of provider: http://edirc.repec.org/data/dscatit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.