Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence

@article{Andreoni1989GivingWI,
  title={Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence},
  author={James Andreoni},
  journal={Journal of Political Economy},
  year={1989},
  volume={97},
  pages={1447 - 1458}
}
  • J. Andreoni
  • Published 1 December 1989
  • Economics
  • Journal of Political Economy
Models of giving have often been based on altruism. Examples include charity and intergenerational transfers. The literatures on both subjects have centered around neutrality hypotheses: charity is subject to complete crowding out, while intergenerational transfers are subject to Ricardian equivalence. This paper formally develops a model of giving in which altruism is not "pure." In particular, people are assumed to get a "warm glow" from giving. Contrary to the previous literature, this model… 
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