Article ID Journal Published Year Pages File Type
5034117 Journal of Behavioral and Experimental Economics 2017 11 Pages PDF
Abstract

•We study the effect of a charitable lottery and an income tax on repeated donations.•Both interventions immediately raise total contributions.•Donors continue to give more in a subsequent decision.•The subject's ethical mindset explains heterogeneity in behavior.

We investigate the immediate and subsequent effects of two prominent drivers of charitable giving: a charitable lottery and an income tax. Employing a modified two-round dictator game with the subject's charity of choice as recipient, we find increased immediate donations in the presence of both a charitable lottery and an income tax. We observe positive spillover effects for both treatments, after removing the incentives. Spillovers are particularly observable for participants who express a deontological mindset.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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