Date of Award
Open Access Thesis
Moore School of Business
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.
Martin, J.(2016). Spending Someone Else’s Money: The Impact Of Inheritances On Charitable Giving. (Master's thesis). Retrieved from https://scholarcommons.sc.edu/etd/3842