Charitable Giving
In 2005 charitable giving in the United States totalled over 260 billon dollars, or around 1.9 per cent of personal income, making it a significant fraction of the economy. Individual giving accounted for 77 per cent of this total, while foundations accou
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charitable giving
period-three cycles. Journal of Economic Theory 69, 306-33. Sakai, H. and Tokumaru, H. 1980. Autocorrelations of a certain chaos. IEEE Transactions in Acoustic Speech Signal Process 28, 588-90. Samuelson, P. 1939. Interactions between the multiplier analysis and the principle of acceleration. Review of Economic Statistics 21, 75-8. Sarkovskii, A. 1964. Coexistence of cycles of a continuous map of the line into itself. Ukrains'kyi Matematychnyi Zhurnal 16, 61-71. Sorger, G. 1992. On the minimum rate of impatience for complicated optimal growth paths. Journal of Economic Theory 56, 160-79.
charitable giving
In 2005 charitable giving in the United States totalled over 260 billon dollars, or around 1.9 per cent of personal income, making it a significant fraction of the economy. Individual giving accounted for 77 per cent of this total, while foundations accounted for 12 per cent, bequests for 7 per cent, and corporations for 5 per cent (Giving USA, 2006). Almost 70 per cent of US households report giving to charity. While the United States typically has one of the largest and most extensively studied charitable sectors, other countries around the world also have significant philanthropy (Andreoni, 2001; 2006). There are three sets of actors in markets for charitable giving, and understanding each and their relationships to each other is essential to an understanding of charity. The first set is the donors who supply the dollars and volunteer hours to charities. The second is the charitable organizations, that is, the demand side of the market. They organize donors with fund-raising strategies, and produce the charitable goods and services with the money and time donated. The third player is the government. Governments are involved in charities in a number of ways. In many countries, including the United States, individual taxpayers may be able to deduct charitable donations from their taxable income. Governments also give directly to charities in the form of grants. The following highlights the most important and fundamental aspects of research on charitable giving.
government grants to charities will perfectly crowd out private donations, meaning government spending is largely ineffective. Bergstrom, Blume and Varian (1986) develop this model further to provide a series of elegant derivations, including the (unrealistic) prediction that redistributions of income will be 'undone' if everyone gives to a public good. Andreoni (1988) pushes this model to its natural limits and shows that in large economies we would predict a vanishingly small fraction of people who will give to a public good, which is clearly contradicted by the statistics presented above. For this reason, economists have felt more comfortable assuming that, in addition to caring about the total supply of charity, what could be called pure altruism, people also experience some direct private utility from the act of giving. While there are numerous models and justifications for such an assumption, they have often been gathered under
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