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Does Altruism Mitigate Free-riding and Welfare Loss?

Akram Temimi ()
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Akram Temimi: University of Alabama

Economics Bulletin, 2001, vol. 8, issue 5, 1-8

Abstract: A warm-glow motivation for charitable giving has recently been explored as a possible solution to the problem of inefficient private provision of public goods. However, the introduction of warm-glow affects both the efficient level of public good provision as well as the equilibrium level. Hence it is not clear whether warm-glow mitigates or exacerbates inefficiency. We revisit Andreoni's (1989) model of impure altruism and formally analyze this question. Cornes and Sandler''s (1986) index of easy riding and a version of Debreu''s (1951) coefficient of resource utilization are used as measures of free-riding and welfare loss.

Keywords: altruism (search for similar items in EconPapers)
JEL-codes: D0 H0 (search for similar items in EconPapers)
Date: 2001-10-03
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Citations: View citations in EconPapers (4)

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