The Economics of Altruism, Paternalism and Self-control

144 Pages·2006·1.82 MB·English

The Economics ofAltruism, Paternalism and Self-control
•
i~(T;) STOCKHOLM SCHOOL
u~(1);:U OF ECONOMICS
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HANDELSHOCSKOLANISTOCKHOLM
EFl,TheEconomicResearchInstitute
EFlMission
EFl,theEconomicResearchInstituteattheStockholmSchoolofEconomics,isascientificinstitutionthat
works independently ofeconomic, political and sectional interests. It conducts theoretical and empirical
research in the management and economic sciences, including selectedrelated disciplines. The Institute
encouragesandassistsinthepublicationanddistributionofitsresearchfindingsandisalsoinvolvedinthe
doctoral education at the Stockholm School ofEconomics. At EFl, the researchers select their projects
basedontheneedfortheoreticalorpracticaldevelopmentofaresearchdomain, ontheirmethodological
interests,andonthegeneralityofaproblem.
ResearchOrganization
TheresearchactivitiesattheInstituteareorganizedinto22ResearchCentres.
CentreDirectorsareprofessorsattheStockholmSchoolofEconomics.
EFlResearchCentre: CentreDirector:
ManagementandOrganisation(A) Sven-ErikSjostrand
CentreforEntrepreneurshipandBusinessCreation(E) CarinHolmquist
PublicManagement(F) NilsBrunsson
InformationManagement(l) MatsLundeberg
CentreforPeopleandOrganization(PMO) AndreasWerr(acting)
CentreforInnovationandOperationsManagement(T) ChristerKarlsson
CentreforRiskResearch(CFR) LennartSjoberg
EconomicPsychology(P) GujeSevon
CentreforConsumerMarketing(CCM) MagnusSoderlund
CentreforInformationandCommunicationResearch(CIC) PerAndersson(acting)
Marketing,DistributionandIndustrialDynamics(D) BjornAxelsson
CentreforStrategyandCompetitiveness(CSC) OrjanSolvell
CentreforBusinessandEconomicHistory(BEH) HakanLindgren
AccountingandManagerialFinance(B) JohnnyLind
CentreforFinancialAnalysisandManagerialEconomicsin KenthSkogsvik
Accounting(BFAC)
Finance(FI) ClasBergstrom
CentreforHealthEconomics(CHE) BengtJonsson
InternationalEconomicsandGeography(lEG) MatsLundahl
Economics(S) LarsBergman
EconomicStatistics(ES) AndersWestlund
Law(RV) ErikNerep
CentreforTaxLaw(SR) BertilWiman
ChairoftheBoard:ProfessorCarinHolmquist
Director:AssociateProfessorFilipWijkstrom
Address
EFl,Box6501,SE-113 83Stockholm,Sweden •Website:www.hhs.se/efi/
Telephone:[phone]•Fax:[phone]•[email protected]
THE ECONOMICS OF ALTRUISM, PATERNALISM
AND SELF-CONTROL
Anna Brernan
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STOCKHOLM SCHOOL
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OF ECONOMICS
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EF!,TheEconomicResearchInstitute
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Dissertationfor the Degree ofDoctor ofPhilosophy, Ph.D.
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KEYWORDS: Altruism, Dictator Game, Empirical test, Endogeneity, Experiment, Field Ex
periment, ForeignAid, Healthcare,Inter-temporalChoice, Paternalism, Philanthropy,Publicgoods,
Self-control
@EFI and the author, 2006
ISBN NR 91-7258-698-2
PRINTED BY:
Elanders Gotab, Stockholm 2006
DISTRIBUTED BY:
EFl, The Economic Research Institute
Stockholm SchoolofEconomics
P 0 Box 6501, SE-113 83 Stockholm
www.hhs.se/efi
To my family

Contents
Acknowledgements xi
Summary ofThesis 1
Introduction 3
Summary ofPapers 5
References 9
Papers 11
Paper 1. Give More Tomorrow 13
1. Introduction 13
2. The model 16
3. Review ofrelated literature 22
4. Experimental Design 24
5. Results 27
6. Conclusions 36
References 39
Paper 2. Crowding Out or Crowding In? 43
1. Introduction 43
2. Previous literature 45
3. The SFI Dataset 48
4. Empirical Specification 52
5. Estimation 55
6. Conclusions 63
References 67
Paper 3. Is Foreign Aid Paternalistic? 69
1. Introduction 69
2. A Review ofRelated Literature 72
3. Theoretical Definitions 73
4. Experimental Design 76
5. Results 81
6. Concluding Remarks 86
Appendix A 88
ix
x CONTENTS
Appendix B 91
References 95
Paper 4. Altruism without Borders? 99
1. Introduction 99
2. Experimental Design 102
3. Results 106
4. Concluding Remarks 113
Appendix A 116
AppendixB 119
References 123
Acknowledgements
First,I wishtoexpressmysinceregratitudetomysupervisor, MagnusJohannesson.
Magnus has been very generous with his time and advice. Yet, what I appreciate the
most with Magnus is his inspiring approach to research, and his impressive ability to
give advice on a wide range oftopics.
I have also benefited from rewarding discussions with Karolina Ekholm and Paul
Segerstromduringmyinitialyears ofgraduatestudies, and morerecentlyfrom discus
sions with Tore Ellingsen, Jorgen Weibull and Niklas Zethraeus.
Financial support from Jan Wallander and Tom Hedelius' Research Foundation,
which enabled me to spend a semester at Harvard University, is gratefully acknowl
edged. While there, I particularly appreciated the rewarding discussions with Antonia
Atanassova, Sendhil Mullainathan and Jeremy Tobacman.
I am also indebtedto CarinBlanksvard, PirjoFurtenbach, RitvaKiviharju, Anneli
Sandbladh, and Lilian Oberg for their friendliness and excellent support.
I want to thank my co-author Ola Granstrom for good collaboration. Among my
colleagues, therearesomanypeoplewhosecompanyI haveappreciatedandI canonly
mentionafewhere; Myfirst yearcompanionsFredrikWilander, MaxEIgerandHarald
Edquist; Therese Lindahl and Nina Waldenstrom, who introduced me to the "sauna
tradition" and Erika Farnstrand who later joined; and of course the 8th floor lunch
group with Erik Gronqvist, Erik Hoglin, Henrik Lundvall, Andreas Madestam, Conny
Olovsson, Per Sonnerby, BjornTyrefors, DanielWaldenstrom, and Robert Ostling.
I want to express a special thanks to Chloe Le Coq and Elena Paltseva. Their
friendship and support have made a big difference.
Finally, I wish to thank my family - my mother Carina, my brother Emil, and my
boyfriend lain- for encouragement, love and support.
Stockholm, April 2006
Anna Breman
xi