Why Do People Give? Testing Pure and Impure Altruism†

Why Do People Give? Testing Pure and Impure Altruism† AbstractResearchers measure crowd-out around one level of charity output to identify whether giving is motivated by altruism and/or warm-glow. However, crowd-out depends on output, implying first that the power to reject pure altruism varies, and second that a single measurement of incomplete crowd-out can be rationalized by many different preferences. By instead measuring crowd-out at different output levels, we allow both for identification and for a novel and direct test of impure altruism. Using a new experimental design, we present the first empirical evidence that, consistent with impure altruism, crowd-out decreases with output. (JEL D64, L31) http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Economic Review American Economic Association

Why Do People Give? Testing Pure and Impure Altruism†

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Publisher
American Economic Association
Copyright
Copyright © 2017 © American Economic Association
ISSN
0002-8282
D.O.I.
10.1257/aer.20141222
Publisher site
See Article on Publisher Site

Abstract

AbstractResearchers measure crowd-out around one level of charity output to identify whether giving is motivated by altruism and/or warm-glow. However, crowd-out depends on output, implying first that the power to reject pure altruism varies, and second that a single measurement of incomplete crowd-out can be rationalized by many different preferences. By instead measuring crowd-out at different output levels, we allow both for identification and for a novel and direct test of impure altruism. Using a new experimental design, we present the first empirical evidence that, consistent with impure altruism, crowd-out decreases with output. (JEL D64, L31)

Journal

American Economic ReviewAmerican Economic Association

Published: Nov 1, 2017

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