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} }
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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