All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Diego Nocetti
''On the private exchange of charitable gifts''
( 2014, Vol. 34 No.1 )
The private exchange of charitable gifts (e.g. charity gift-cards) has recently become an important source of donations to charities. In this paper we study this new phenomenon using the classical model of private provision of public goods, modified to account for exchange of private gifts. Contrary to intuition, we show that a change in social norms characterized by an increase in the amount spent on charitable gifts and a decrease in the amount spent on traditional gifts can decrease the total supply of donations. The magnitude of the change in donations depends on the contributors' degree of altruism, the efficiency of traditional gifts relative to a monetary gift, and the efficiency of charitable gifts in generating warm-glow.
Keywords: Charitable gifts, warm-glow, public goods
D6 - Welfare Economics: General
Manuscript Received : Sep 17 2013 Manuscript Accepted : Jan 20 2014

  This abstract has been downloaded 1421 times                The Full PDF of this paper has been downloaded 151995 times