No abstract

When people give to charity, they rarely give to the charities that do the most good per dollar. Why is this? One possibility is that they do not know how to give effectively. Another possibility is that they are not motivated to give effectively. Across six tasks (Studies 1a, 1b), we find that there is truth to both explanations. People have multiple misconceptions that affect the effectiveness of their giving, including about disaster relief, overhead costs, donation splitting, and the relative effectiveness of local and foreign charities. Similarly, they are unfamiliar with the most effective charities (Studies 2a, 2b). Debunking these misconceptions and informing people about the most effective charities makes them donate more effectively. However, to a certain extent people continue to give ineffectively even when informed how to give effectively. This is because they have preferences for ineffective charities: they want to donate to a charity they feel emotionally connected to even when they know that it is less effective. By contrast, members of the effective altruism movement, who are committed to effective giving, give effectively across all tasks. They neither have misconceptions nor preferences for ineffective charities (Study 3). Taken together, our studies show that only when people are both correctly informed and motivated to donate effectively will they consistently give to effective charities.

This study analyses the economic impact of the Biathlon World Cup 2009 in Antholz-Anterselva. The survey concentrates on the immediate, direct and short-term additional revenue brought into the region by foreign sports event spectators. The authors first apply an expenditure-based segmentation technique to data collected during the event to separate respondents according to socio-demographic variables. Second, a Tobit analysis is applied to obtain an expenditure model that is useful in explaining the different determinants of trip expenditures by spectators of the event. The results reveal significant socio-demographic differences between the four expenditure groups. For instance, heavy spenders are composed mainly of mature tourists, arriving for the first time in medium-sized groups. Also, the most important factors in total expenditure are income level, the geographical origin of the spectator and the size of the travel group.

The paper corrects a subtle, but crucial, conceptual flaw in a solution procedure initially proposed in 1990 by Sen and Turnovsky to analyze anticipated regime changes in small open economies based on the intertemporal optimization of rational forward-looking agents. The problem is its failure to consider the intertemporal solvency of the economy consistently. The paper focuses on temporary shocks, although the procedure also applies to announced future permanent policy changes. Since the issue is generic and relevant to a large class of policy changes, it is important for the intertemporal solvency aspect to be incorporated consistently. The authors show that the seriousness of the error in the previous solution procedure depends upon the specific shock, and two contrasting examples are discussed.

No abstract