NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Mark Ottoni-Wilhelm

IUPUI
Department of Economics
425 University Boulevard
Cavanaugh Hall, Room 516
Indianapolis, IN 46202

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Institutional Affiliations: IUPUI and IU Lilly Family School of Philanthropy

NBER Working Papers and Publications

August 2018Impure Impact Giving: Theory and Evidence
with Daniel M. Hungerman: w24940
We present a new model of charitable giving where individuals regard out-of-pocket donations and the matches they induce as different. We show that match-price elasticities combine conventional price effects with the strength of warm-glow, so that a match-price elasticity alone is insufficient to characterize preferences for giving. Match- and rebate-price elasticities will typically be different, but together they lead to tests of underlying giving preferences. We estimate, for the first time, a match-price elasticity together with a real-world tax-based rebate elasticity in a non-laboratory high-stakes setting. The estimates reject extant models of giving, but are consistent with the new theory.
September 2014Why Do People Give? Testing Pure and Impure Altruism
with Lise Vesterlund, Huan Xie: w20497
The extant experimental design to investigate warm glow and altruism elicits a single measure of crowd-out. Not recognizing that impure altruism predicts crowd-out is a function of giving-by-others, this design's power to reject pure altruism varies with the level of giving-by-others, and it cannot identify the strength of warm glow and altruism preferences. These limitations are addressed with a new design that elicits crowd-out at a low and at a high level of giving-by-others. Consistent with impure altruism we find decreasing crowd-out as giving-by-others increases. However warm glow is weak in our experiment and altruism largely explains why people give.

Published: Mark Ottoni-Wilhelm & Lise Vesterlund & Huan Xie, 2017. "Why Do People Give? Testing Pure and Impure Altruism," American Economic Review, vol 107(11), pages 3617-3633. citation courtesy of

 
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