Consistent or balanced? On the dynamics of voluntary contributions

Carlo Gallier, Christiane Reif and Daniel Römer

ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: We investigate the dynamic effects of a charitable lottery and an income tax on donations. The analysis is based on a two-round dictator game with the subject's charity of choice as recipient and additional incentives in the first round only. The immediate effect of a charitable lottery leads to higher contributions and we cannot find substantial crowding out of voluntary contributions in the presence of an income tax. These economic interventions weakly spill-over to the subsequent donation decisions without additional incentives. Our results suggest the presence of consistency seeking behaviour. This is especially true for a subgroup of participants with a rule-based mind-set and our research shows the importance of the subjects' moral framework in the context of dynamic pro-social behaviour.

Keywords: Experiment; Charitable Giving; Lottery; Tax; Modified Dictator Game; Moral Balancing (search for similar items in EconPapers)
JEL-codes: C91 D03 D64 H41 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-cbe and nep-exp
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:14060r

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