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Charity Donations and the Euro Introduction: Some Quasi-Experimental Evidence on Money Illusion

  • Kooreman, Peter

    ()

    (Tilburg University)

  • Faber, Riemer

    ()

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Hofmans, Heleen

    (University of Groningen)

We compare the revenues of a house-to-house collection for a charity before and after the introduction of the euro in a ceteris paribus setting. We find strong evidence of money illusion, supplementing earlier econometric, experimental, and survey evidence on its existence.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1318.

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Length: 7 pages
Date of creation: Sep 2004
Date of revision:
Publication status: published in: Journal of Money, Credit, and Banking, 2004, 36 (6), 1121-1124
Handle: RePEc:iza:izadps:dp1318
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  1. Shafir, Eldar & Diamond, Peter & Tversky, Amos, 1997. "Money Illusion," The Quarterly Journal of Economics, MIT Press, vol. 112(2), pages 341-74, May.
  2. Ernst Fehr & Jean-Robert Tyran, 2000. "Does Money Illusion Matter?," IEW - Working Papers 045, Institute for Empirical Research in Economics - University of Zurich.
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