IDEAS home Printed from https://ideas.repec.org/p/kse/dpaper/51.html
   My bibliography  Save this paper

The Charity of the Extremely Wealthy

Author

Listed:
  • Tom Coupe

    () (Kyiv School of Economics and Kyiv Economics Institute)

  • Claire Monteiro

    (Georgetown University)

Abstract

In this paper, we compare the charitable behavior of billionaires who inherited their wealth to the charitable behavior of those billionaires who made their own wealth. Self-made billionaires are found to be more likely to sign the ‘Giving Pledge’ and more likely to be in the Million Dollar Gifts lists or the Philanthropy Top 50 list of big givers, even after controlling for many other variables that can affect charitable behavior. They also are found to give more conditional on giving. This finding, which is consistent with ‘mental accounting’ occurring even at extremely high stakes, means policy makers in many emerging markets with ‘new’ billionaires better quickly modernize their outdated charity laws.

Suggested Citation

  • Tom Coupe & Claire Monteiro, 2013. "The Charity of the Extremely Wealthy," Discussion Papers 51, Kyiv School of Economics.
  • Handle: RePEc:kse:dpaper:51
    Note: Submitted to ERSTE Social Science Research Paper Series
    as

    Download full text from publisher

    File URL: http://repec.kse.org.ua/pdf/KSE_dp51.pdf
    File Function: November 2013
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Henrekson, Magnus & Sanandaji, Tino, 2013. "Small Business Activity Does not Measure Entrepreneurship," Working Paper Series 959, Research Institute of Industrial Economics, revised 26 Jan 2014.
    2. Steven N. Kaplan & Joshua Rauh, 2013. "It's the Market: The Broad-Based Rise in the Return to Top Talent," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 35-56, Summer.
    3. Eric Neumayer, 2004. "The super-rich in global perspective: a quantitative analysis of the Forbes list of billionaires," Applied Economics Letters, Taylor & Francis Journals, vol. 11(13), pages 793-796.
    4. Wilhelm, Mark Ottoni & Brown, Eleanor & Rooney, Patrick M. & Steinberg, Richard, 2008. "The intergenerational transmission of generosity," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2146-2156, October.
    5. David Reinstein & Gerhard Riener, 2012. "Decomposing desert and tangibility effects in a charitable giving experiment," Experimental Economics, Springer;Economic Science Association, vol. 15(1), pages 229-240, March.
    6. Richard H. Thaler & Eric J. Johnson, 1990. "Gambling with the House Money and Trying to Break Even: The Effects of Prior Outcomes on Risky Choice," Management Science, INFORMS, vol. 36(6), pages 643-660, June.
    7. Arkes, Hal R. & Joyner, Cynthia A. & Pezzo, Mark V. & Nash, Jane Gradwohl & Siegel-Jacobs, Karen & Stone, Eric, 1994. "The Psychology of Windfall Gains," Organizational Behavior and Human Decision Processes, Elsevier, vol. 59(3), pages 331-347, September.
    8. Gabrielle Fack & Camille Landais, 2010. "Are Tax Incentives for Charitable Giving Efficient? Evidence from France," American Economic Journal: Economic Policy, American Economic Association, vol. 2(2), pages 117-141, May.
    9. King, Gary & Zeng, Langche, 2001. "Logistic Regression in Rare Events Data," Political Analysis, Cambridge University Press, vol. 9(02), pages 137-163, January.
    10. Bakija, Jon & Heim, Bradley T., 2011. "How Does Charitable Giving Respond to Incentives and Income? New Estimates From Panel Data," National Tax Journal, National Tax Association;National Tax Journal, vol. 64(2), pages 615-650, June.
    11. Tomz, Michael & King, Gary & Zeng, Langche, 2003. "ReLogit: Rare Events Logistic Regression," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 8(i02).
    12. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    billionaires; Forbes; mental accounting; fundraising;

    JEL classification:

    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:kse:dpaper:51. 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: (Iryna Sobetska). General contact details of provider: http://edirc.repec.org/data/ksecoua.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.