{"title":"A Signal of Altruistic Motivation for Foreign Aid","authors":"Civelli Andrea, W. Andrew, Teixeira Arilton","doi":"10.1515/BEJEAP-2016-0024","DOIUrl":null,"url":null,"abstract":"We develop a stylized theoretical model showing that countercyclical transfers from a wealthy donor to a poorer recipient generate a signal of altruistic donor motivation. Applying the model to OECD foreign aid (ODA) data we find the signal present in approximately one-sixth of a large set of donor–recipient pairs. We then undertake two out-of-model exercises to validate the signal: a logit regression of signal determinants and the growth effects of ODA from signal-positive pairs are compared to non-signal bearers. The logit indicates our signal meaningfully distinguishes donor–recipient pairs by characteristics typically associated with altruism. The growth exercise shows ODA from signal bearers displays stronger reverse causation and more positive long-run effects. Beyond foreign aid, our signal of altruistic motivation may be applicable to a wide range of voluntary transfers.","PeriodicalId":47400,"journal":{"name":"B E Journal of Economic Analysis & Policy","volume":"15 1","pages":"1-31"},"PeriodicalIF":1.1000,"publicationDate":"2016-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"6","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"B E Journal of Economic Analysis & Policy","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1515/BEJEAP-2016-0024","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 6
Abstract
We develop a stylized theoretical model showing that countercyclical transfers from a wealthy donor to a poorer recipient generate a signal of altruistic donor motivation. Applying the model to OECD foreign aid (ODA) data we find the signal present in approximately one-sixth of a large set of donor–recipient pairs. We then undertake two out-of-model exercises to validate the signal: a logit regression of signal determinants and the growth effects of ODA from signal-positive pairs are compared to non-signal bearers. The logit indicates our signal meaningfully distinguishes donor–recipient pairs by characteristics typically associated with altruism. The growth exercise shows ODA from signal bearers displays stronger reverse causation and more positive long-run effects. Beyond foreign aid, our signal of altruistic motivation may be applicable to a wide range of voluntary transfers.
期刊介绍:
The B.E. Journal of Economic Analysis & Policy welcomes submissions that employ microeconomics to analyze issues in business, consumer behavior, and public policy. We aim to be an international forum for scholarship, whether the scholarship considers an issue that is general or that pertains to a particular country or region, but authors should bear in mind that our readers come from around the world. Potential issues of interest include: the interaction of firms, the functioning of markets, the effects of domestic and international policy, and the design of organizations and institutions.