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Motives for Sharing in Developing Countries: Experimental Evidence from Jakarta

  • Ado, Akifumi
  • Kurosaki, Takashi
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    We implemented laboratory experiments in Jakarta, Indonesia, to identify motives for sharing, including baseline altruism, directed altruism, sanction aversion, and reciprocity. The study area is located on the periphery of the Metropolis of Jakarta, many of whose residents are migrants and are closely connected with informal institutions such as Arisan, a rotating savings and credit association in Indonesia. Using data from sample households, the experimental results show that transfers based on baseline altruism accounted for the largest amount.Because the difference in the transferred amounts arising from the revelation of dictators' identities was statistically insignificant, we combined the four motives into two: preference-related motives (baseline and directed altruism) and incentive-related motives (sanction aversion and reciprocity) for the examination of their association with real world behavior regarding sharing. The empirical results suggest the importance of incentive-related motives in explaining variations in the amount of income transfers received from and sent to others.

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    Paper provided by Institute of Economic Research, Hitotsubashi University in its series PRIMCED Discussion Paper Series with number 53.

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    Length: 28 p.
    Date of creation: Mar 2014
    Date of revision:
    Handle: RePEc:hit:primdp:53
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    1. Townsend, Robert M, 1994. "Risk and Insurance in Village India," Econometrica, Econometric Society, vol. 62(3), pages 539-91, May.
    2. Marcel Fafchamps & Susan Lund, 2000. "Risk-Sharing Networks in Rural Philippines," Economics Series Working Papers 10, University of Oxford, Department of Economics.
    3. Marcel Fafchamps & Flore Gubert, 2005. "The Formation of Risk Sharing Networks," Working Papers DT/2005/13, DIAL (Développement, Institutions et Mondialisation).
    4. Ligon, Ethan & Schechter, Laura, 2011. "Motives for sharing in social networks," CUDARE Working Paper Series 1120, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
    5. Jeffery Carpenter & Juan Camilo Cardenas, 2006. "Behavioural Development Economics: Lessons from field labs in the developing world," Middlebury College Working Paper Series 0616, Middlebury College, Department of Economics.
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