Relative income, social preferences and charitable giving: An experimental analysis

Despite its economic importance, little is known about the exact relationship between income and charitable giving. This project uses economic experiments to enhance our understanding of this relationship by exploring the reasons why individuals with different levels of income give money to others. In particular, our goals are to explore: (i) whether high income earners are less likely to give to others than middle income earners, (ii) whether this relationship depends on the determinants of income, and (iii) whether this relationship is affected by cultural factors. Results from this project can help policy makers design appropriate public policies relating to charitable giving, taxation, welfare support, and redistribution.