Relative income and generosity

• In Event: Behavioral Insights on Social Preferences and Consumption

Abstract

We experimentally test the effect of relative income on charitable giving. Some research has suggested a nonlinear Engel Curve in generosity: a U-Shaped Charitable-Giving Curve, albeit mostly in U.S. settings. We make two contributions. Firstly we expand the geographic scope and experimentally trace the Engel Curve internationally. Secondly, informed by our model of behavioural giving, we also test for different underlying mechanisms (e.g. extensive margin responses, bunching at round numbers, differential price sensitivity.)

This paper is joint with Diogo Geraldes (UCD).

Author

• Enda Hargaden, University College Dublin