Altruistic Behavior and Government Interventions in Times of Crisis

Abstract

We analyze the response of charitable donations to restrictions on civil liberties. We argue that restrictions can either increase altruistic behavior through enhancements in the perceived benefit of donations, or crowd out altruistic behavior due to utility losses associated with the restrictions. Using data on donations in Norwegian grocery stores, we find evidence for a significant increase in donation rates following the implementation of restrictions. Importantly, this rise appears to be driven by individuals not directly affected by the restrictions. This suggests that the influence of civil liberty restrictions on individual donation behavior depends strongly on the personal impact of these restrictions for the individual.

Keywords: Altruistic behavior, charitable giving, civil liberties, government intervention

JEL Classification: H12, D91