Charity and Gift Exchange in Pakistan
State Bank of Pakistan
Pakistan Institute of Development Economics
May 23, 2009
Researchers have established that gift exchange is an important explanation for efficiency wages. Since gift exchange is a culture dependent phenomenon, we sought to replicate these findings in Pakistan, to assess the prevalence of gift exchange mechanism. We chose to study gift exchange via a field experiment in the simple setting of charitable donations in door to door campaign. Significant differences in outcomes were observed, suggesting a rejection of the simple gift exchange mechanism, which involves roughly equal exchanges over short time intervals. A plausible alternative explanation for our results may be complex gift exchange, which works over longer intervals.
Number of Pages in PDF File: 23
Keywords: gift exchange, charity Giving
JEL Classification: C93, D63
Date posted: August 31, 2009 ; Last revised: August 19, 2014
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