Specification of the Joy of Giving: Insights from Altruism

23 Pages Posted: 21 Mar 2007

See all articles by Andrew B. Abel

Andrew B. Abel

University of Pennsylvania - Finance Department; National Bureau of Economic Research (NBER)

Mark J. Warshawsky

Towers Watson; Mercatus Center at George Mason University

Date Written: February 1987

Abstract

This paper analyzes the joy of giving bequest motive in which the utility obtained from leaving a bequest depends only on the size of the bequest. It exploits the fact that this formulation can be interpreted as a reduced form of an altruistic bequest motive to derive a relation between the value of the altruism parameter and the value of the joy of giving parameter. Using previous discussions of an a priori range of plausible values for the altruism parameter we then derive plausible restrictions on the joy of giving parameter. We demonstrate that this parameter may well be orders of magnitude larger than assumed in the existing literature.

Suggested Citation

Abel, Andrew B. and Warshawsky, Mark J., Specification of the Joy of Giving: Insights from Altruism (February 1987). NBER Working Paper No. w2154. Available at SSRN: https://ssrn.com/abstract=975458

Andrew B. Abel (Contact Author)

University of Pennsylvania - Finance Department ( email )

The Wharton School
3620 Locust Walk
Philadelphia, PA 19104
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215-898-4801 (Phone)
215-573-7244 (Fax)

HOME PAGE: http://finance.wharton.upenn.edu/~abel/

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Mark J. Warshawsky

Towers Watson ( email )

Arlington, VA
United States

Mercatus Center at George Mason University

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

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