Date of Award

2016

Document Type

Open Access Thesis

Department

Moore School of Business

Sub-Department

Economics

First Advisor

Daniel Jones

Abstract

Experimental literature has documented a ‘house money effect’, in which subjects using unearned endowments are less risk averse and more willing to consume than when they use an endowment they have not earned. I use Panel Study of Income Dynamics (PSID) data to test for this effect outside the laboratory by estimating the impact of inherited money on charitable giving. When I control for differences between individuals, I find that the impact of inheritances is significantly reduced. My results indicate that the correlation observed in previous econometric analyses is largely driven by non-random allocation of inheritances to individuals predisposed to give more than average.

Included in

Economics Commons

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