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Directed Giving: Evidence from an Inter-Household Transfer Experiment

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  • Catia Batista
  • Dan Silverman
  • Dean Yang

Abstract

We investigate the determinants of giving in a lab-in-the-field experiment with large stakes. Study participants in urban Mozambique play dictator games where their counterpart is the closest person to them outside their household. When given the option, dictators do a large fraction of giving in kind (in the form of goods) rather than cash. In addition, they share more in total when they have the option of giving in kind, compared to giving that can only be in cash. Qualitative post-experiment responses suggest that this effect is driven by a desire to control how recipients use gifted resources. Standard economic determinants such as the rate of return to giving and the size of the endowment also affect giving, but the effects of even large changes in these determinants are significantly smaller than the effect of the in-kind option. Our results support theories of giving where the utility of givers depends on the composition (not just the level) of gift-recipient expenditures, and givers thus seek control over transferred resources.

Suggested Citation

  • Catia Batista & Dan Silverman & Dean Yang, 2014. "Directed Giving: Evidence from an Inter-Household Transfer Experiment," NBER Working Papers 20605, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:20605
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    2. Chabé-Ferret, Bastien & Machado, Joël & Wahba, Jackline, 2018. "Remigration intentions and migrants' behavior," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 56-72.
    3. Catia Batista & Janis Umblijs, 2016. "Do migrants send remittances as a way of self-insurance?," Oxford Economic Papers, Oxford University Press, vol. 68(1), pages 108-130.
    4. Catia Batista & Gaia Narciso, 2018. "Migrant Remittances and Information Flows: Evidence from a Field Experiment," The World Bank Economic Review, World Bank Group, vol. 32(1), pages 203-219.
    5. Abraham, Diya & Corazzini, Luca & Fišar, Miloš & Reggiani, Tommaso, 2023. "Coordinating donations via an intermediary: The destructive effect of a sunk overhead cost," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 287-304.
    6. Bastien Chabé-Ferret & Joël Machado & Jackline Wahba, 2016. "Return Plans and Migrants' Behavior," LIDAM Discussion Papers IRES 2016016, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    7. Marlon Seror, 2015. "Modeling and Measuring Information Asymmetry in the Context of Senegalese Migrants' Remittances," Working Papers DT/2015/23, DIAL (Développement, Institutions et Mondialisation).
    8. Christine L. Exley, 2020. "Using Charity Performance Metrics as an Excuse Not to Give," Management Science, INFORMS, vol. 66(2), pages 553-563, February.
    9. Cátia Batista & Marcel Fafchamps & Pedro C Vicente, 2022. "Keep It Simple: A Field Experiment on Information Sharing among Strangers [Changing Saving and Investment Behavior: The Impact of Financial Literacy Training and Reminders on Micro-Businesses]," The World Bank Economic Review, World Bank Group, vol. 36(4), pages 857-888.
    10. Flore Gubert, 2014. "The discourse and practice of co-development in Europe," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 5, pages 113-151, Edward Elgar Publishing.
    11. Farai Jena, 2016. "The remittance behaviour of Kenyan sibling migrants," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-19, December.
    12. Exley, Christine L. & Petrie, Ragan, 2018. "The impact of a surprise donation ask," Journal of Public Economics, Elsevier, vol. 158(C), pages 152-167.
    13. Marius Alt & Carlo Gallier & Achim Schlüter & Katherine Nelson & Eva Anggraini, 2018. "Giving to versus Taking from In- and Out-Group Members," Games, MDPI, vol. 9(3), pages 1-14, August.
    14. Jean N. Lee & Jonathan Morduch & Saravana Ravindran & Abu S. Shonchoy, 2023. "The Social Meaning of Mobile Money: Willingness to Pay with Mobile Money in Bangladesh," Working Papers 2304, Florida International University, Department of Economics.
    15. Dean Karlan, Aishwarya Lakshmi Ratan, Jonathan Zinman, 2013. "Savings by and for the Poor: A Research Review and Agenda-Working Paper 346," Working Papers 346, Center for Global Development.
    16. Larney, Andrea & Rotella, Amanda & Barclay, Pat, 2019. "Stake size effects in ultimatum game and dictator game offers: A meta-analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 151(C), pages 61-72.
    17. Natalia Candelo & Catherine Eckel & Cathleen Johnson, 2018. "Social Distance Matters in Dictator Games: Evidence from 11 Mexican Villages," Games, MDPI, vol. 9(4), pages 1-13, October.
    18. Gangadharan, Lata & Grossman, Philip J. & Jones, Kristy & Leister, C. Matthew, 2018. "Paternalistic giving: Restricting recipient choice," Journal of Economic Behavior & Organization, Elsevier, vol. 151(C), pages 143-170.
    19. Christine L. Exley, 2015. "Excusing Selfishness in Charitable Giving: The Role of Risk," Discussion Papers 15-013, Stanford Institute for Economic Policy Research.
    20. Giuseppe Arcangelis & Majlinda Joxhe, 2021. "Intra-household allocation with shared expenditure choices: experimental evidence from Filipino migrants," Review of Economics of the Household, Springer, vol. 19(4), pages 1245-1274, December.
    21. Vojtěch Bartoš & Ian Levely & Vojtech Bartos, 2023. "Measuring Social Preferences in Developing Economies," CESifo Working Paper Series 10744, CESifo.
    22. Eckel, Catherine C. & Herberich, David H. & Meer, Jonathan, 2017. "A field experiment on directed giving at a public university," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 66(C), pages 66-71.
    23. Diya Elizabeth Abraham & Luca Corazzini & Miloš Fišar & Tommaso Reggiani, 2021. "Delegation and Overhead Aversion with Multiple Threshold Public Goods," MUNI ECON Working Papers 2021-14, Masaryk University, revised Feb 2023.
    24. Giuseppe Arcangelis & Majlinda Joxhe, 0. "Intra-household allocation with shared expenditure choices: experimental evidence from Filipino migrants," Review of Economics of the Household, Springer, vol. 0, pages 1-30.

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    More about this item

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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