Taking the Well-Being of Future Generations Seriously: Do People Contribute More to Intra-Temporal or Inter-Temporal Public Goods?

Abstract

We investigate the dynamics of cooperation in public good games when contributions to the public good are immediately redistributed across contributors (intra-temporal transfers) and when contributions to the public good by the current group are transferred over time to a future group (inter-temporal transfers). We show that people are more cooperative in inter-temporal contexts than in intra-temporal contexts. We also find that subjects invest more on average in public goods when they know in advance their inheritance from the past.

Keywords: Public goods, Voluntary contribution mechanism, Inter-temporal vs intra-temporal transfers, Sustainable development

JEL Classification: C72, C92, H41