Journal
AMERICAN ECONOMIC REVIEW
Volume 107, Issue 11, Pages 3617-3633Publisher
AMER ECONOMIC ASSOC
DOI: 10.1257/aer.20141222
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Funding
- Research Fund of the Indiana University Lilly Family School of Philanthropy
- National Science Foundation [SES-0963034]
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Researchers 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.
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