Inequality as determinant of donation: A theoretical modeling and empirical analysis of Korea.

ABSTRACT: Recipient financial need is a crucial factor in donation decisions. This study proposes a novel model for determining financial donations, incorporating consumption levels of both donor and recipient within a societal context. Solving our model's utility maximization problem reveals how consumption, donation, and savings are interlinked. Empirical evidence reinforces these findings, aligning with prior research and showing that larger consumption gaps between donors and recipients lead to increased donations. Our findings point towards an inherent altruistic motivation in donation, where elevating the recipient's well-being ultimately enhances the donor's own utility. This reinforces the notion that consideration of the recipient's financial hardship, as reflected by their consumption patt

SUBMITTER: Sohn SH 

PROVIDER: S-EPMC11404803 | biostudies-literature | 2024

REPOSITORIES: biostudies-literature