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On time and money donations

Author

Listed:
  • Cappellari, Lorenzo
  • Ghinetti, Paolo
  • Turati, Gilberto

Abstract

This paper investigates the importance of two forms of ‘impure’ altruism (“warm glow” and reputational concerns) as potential determinants of both time and money gifts. We first develop a comprehensive behavioral model which accounts for both types of donations, as well as for decisions about domestic and market hours of work. We then provide an empirical test of these drivers for giving using survey data for Italy. Results suggest that, according to the theoretical predictions, proxies for ‘impure’ altruism are important determinants of donations. Moreover, the unobservable determinants driving money and time donations are positively correlated, suggesting a certain degree of complementarity between the two decisions. Our findings also stress the importance of considering a behavioral model accounting for a full set of time and income uses to better characterize individual decisions to donate.

Suggested Citation

  • Cappellari, Lorenzo & Ghinetti, Paolo & Turati, Gilberto, 2011. "On time and money donations," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 853-867.
    • Handle: RePEc:eee:soceco:v:40:y:2011:i:6:p:853-867
    DOI: 10.1016/j.socec.2011.08.013
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    More about this item

    Keywords

    Volunteering; Money donations; Household behavior; ‘Impure’ altruism;
    All these keywords.

    JEL classification:

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

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