Altruistic Behavior and Government Interventions in Times of Crisis

• In Event: Behavioral Insights on Social Preferences and Consumption

Abstract

We analyze the response of charitable donations to restrictions on civil liberties. We argue that restrictions either increase altruistic behavior by raising the perceived benefit of donations, or crowd out altruistic behavior due to utility losses associated with restrictions. Using data on donations in Norwegian grocery stores, we find evidence for a significant increase in donation rates following the implementation of local restrictions. We provide evidence that this rise is likely driven by individuals not directly affected by the restrictions. Thus, the influence of government restrictions on altruistic behavior depends strongly on the impact of these restrictions for the individual.

Author

• Maximilian Todtenhaupt, Norwegian School of Economics & Leibniz University Hannover