Consistent or balanced? : On the dynamics of voluntary contributions


Gallier, Carlo ; Reif, Christiane ; Römer, Daniel


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URL: https://ub-madoc.bib.uni-mannheim.de/37070
URN: urn:nbn:de:bsz:180-madoc-370709
Document Type: Working paper
Year of publication: 2014
The title of a journal, publication series: ZEW Discussion Papers
Volume: 14-060
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: C91 , D64,
Keywords (English): Charitable giving , laboratory experiment , lottery , tax , voluntary contribution mechanism
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.




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