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The Charity Of The Extremely Wealthy

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  • Tom Coupe
  • Claire Monteiro

Abstract

In this paper, we compare the charitable behavior of billionaires who inherited their wealth to the charitable behavior of those billionaires who made their own wealth. Self-made billionaires are found to be more likely to sign the ‘Giving Pledge’ and more likely to be in the Million Dollar Gifts lists or the Philanthropy Top 50 list of big givers, even after controlling for many other variables that can affect charitable behavior. They also are found to give more conditional on giving. This finding, which is consistent with ‘mental accounting’ occurring even at extremely high stakes, means policy makers in many emerging markets with ‘new’ billionaires better quickly modernize their outdated charity laws.
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  • Tom Coupe & Claire Monteiro, 2016. "The Charity Of The Extremely Wealthy," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 751-761, April.
    • Handle: RePEc:bla:ecinqu:v:54:y:2016:i:2:p:751-761
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    File URL: http://hdl.handle.net/10.1111/ecin.12311
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    JEL classification:

    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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