Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5034117 | Journal of Behavioral and Experimental Economics | 2017 | 11 Pages |
â¢We study the effect of a charitable lottery and an income tax on repeated donations.â¢Both interventions immediately raise total contributions.â¢Donors continue to give more in a subsequent decision.â¢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.