Foundations

908 Pages·2006·6.08 MB·English

by  Serge-Christophe Kolm and Jean Mercier Ythier (Eds.)

INTRODUCTIONTOTHESERIES
The aim of the Handbooks in Economics series is to produce Handbooks for various
branches of economics, each of which is a definitive source, reference, and teaching
supplement for use by professional researchers and advanced graduate students. Each
Handbookprovidesself-containedsurveysofthecurrentstateofabranchofeconomics
intheformofchapterspreparedbyleadingspecialistsonvariousaspectsofthisbranch
ofeconomics.Thesesurveyssummarizenotonlyreceivedresultsbutalsonewerdevel-
opments,fromrecentjournalarticlesanddiscussionpapers.Someoriginalmaterialis
also included, but the main goal is to provide comprehensive and accessible surveys.
TheHandbooksare intendedto providenotonlyuseful referencevolumesfor profes-
sional collections but also possible supplementary readings for advanced courses for
graduatestudentsineconomics.
KENNETHJ.ARROWandMICHAELD.INTRILIGATOR
vii
CONTENTSOFTHEHANDBOOK
VOLUME1
Chapter1
IntroductiontotheEconomicsofGiving,AltruismandReciprocity
SERGE-CHRISTOPHEKOLM
PARTI:FOUNDATIONS
1A:Socialview
Chapter2
TheEmpiricalAnalysisofTransferMotives
ERIKSCHOKKAERT
Chapter3
AltruisticBehaviorandAltruisticMotivations
JONELSTER
Chapter4
TheGiftandReciprocity:PerspectivesfromEconomicAnthropology
CHRISHANN
1B:Overallviews
Chapter5
TheEconomicTheoryofGift-Giving:PerfectSubstitutabilityofTransfersand
RedistributionofWealth
JEANMERCIERYTHIER
Chapter6
Reciprocity:ItsScope,Rationales,andConsequences
SERGE-CHRISTOPHEKOLM
1C:Experimentalsocialpsychology
Chapter7
TheFormationofSocialPreferences:SomeLessonsfromPsychologyandBiology
LOUISLÉVY-GARBOUA,CLAUDEMEIDINGERANDBENOÎTRAPOPORT
ix
x ContentsoftheHandbook
Chapter8
TheEconomicsofFairness,ReciprocityandAltruism–ExperimentalEvidence
andNewTheories
ERNSTFEHRANDKLAUSM.SCHMIDT
1D:Humannature
Chapter9
TheEconomicsofHumanRelationships
PIERLUIGISACCO,PAOLOVANINANDSTEFANOZAMAGNI
Chapter10
HumanNatureandSocialityinEconomics
NICHOLASBARDSLEYANDROBERTSUGDEN
1E:Specialtopics
Chapter11
NaturalKantianorZooEconomicus?EvolutionaryTheoriesofSelfishnessand
AltruismamongMenandBeasts
THEODOREC.BERGSTROM
Chapter12
SolidarityNormsandInstitutionsinVillageSocieties:StaticandDynamic
Considerations
JEAN-PHILIPPEPLATTEAU
VOLUME2
PARTII:FAMILYTRANSFERS
Chapter13
MicroeconomicModelsofFamilyTransfers
ANNELAFERRÈREANDFRANÇOIS-CHARLESWOLFF
Chapter14
Altruism,ExchangeorIndirectReciprocity:WhatDotheDataonFamily
TransfersShow?
LUCARRONDELANDANDRÉMASSON
Chapter15
IntergenerationalAltruismandNeoclassicalGrowthModels
PHILIPPEMICHEL,EMMANUELTHIBAULTANDJEAN-PIERREVIDAL
ContentsoftheHandbook xi
Chapter16
WealthTransferTaxation:ASurveyoftheTheoreticalLiterature
HELMUTHCREMERANDPIERREPESTIEAU
Chapter17
TheEconomicsofMigrants’Remittances
HILLELRAPOPORTANDFRÉDÉRICDOCQUIER
PARTIII:THIRDSECTORANDLABOR
Chapter18
Philanthropy
JAMESANDREONI
Chapter19
DonativeNonprofitOrganizations
MARCBILODEAUANDRICHARDSTEINBERG
Chapter20
TheEconomicsofOrganTransplantation
EMANUELD.THORNE
Chapter21
Altruism,ReciprocityandCooperationintheWorkplace
JULIOJ.ROTEMBERG
Chapter22
Reciprocity,Altruism,andCooperativeProduction
LOUISPUTTERMAN
PARTIV:THEPOLITICALECONOMYOFVOLUNTARYTRANSFERS
Chapter23
StrongReciprocityandtheWelfareState
CHRISTINAM.FONG,SAMUELBOWLESANDHERBERTGINTIS
Chapter24
Selfishness,AltruismandNormativePrinciplesintheEconomicAnalysisof
SocialTransfers
DIDIERBLANCHETANDMARCFLEURBAEY
Chapter25
ThePoliticalEconomyofIntergenerationalCooperation
ALESSANDROCIGNO
xii ContentsoftheHandbook
Chapter26
TheEconomicsofInternationalAid
RAVIKANBUR
PREFACETOTHEHANDBOOK
Fieldandmethods
The field of the Handbook is the analysis of non-market voluntary transfers of scarce
resources,ofthereasonsfortheirexistenceincludingnotablythemotivesoftheagents
involved, and of their relations and interactions with market allocation and public fi-
nance.Itincludesthemeasurementofthemagnitudeandshareofnon-marketvoluntary
transfersandtheirevolutionovertime;andtheassessmentoftheimportanceofmoral
conductsin market exchangefor thegoodfunctioningof markets. It also includesthe
developing,and systematic use for the purposes of economicanalysis, of descriptions
and abstract representations of the “social man” significantly more realistic, accurate
and complete than the conventional representation of the “economic man” often as-
sumed in the economics of the nineteenth and twentieth centuries. From this latter
aspect,theHandbookextendsandrenewsacontinuoustraditionofeconomicscience,
notablyrepresentedintheworksofmostofthefounders,fromthelateeighteenthcen-
tury(AdamSmith)totheearlytwentieth(notablyPareto).Applicationsincludefamily
transfers, gift-giving and volunteering in charities and other non-profit organizations,
cooperation and reciprocity in labor relations, social transfers, public redistribution
and international aid. Methods cover a wide spectrum, in relation to the variety of
considered phenomena, notably: psychological and normative analysis, including the
relevant branches of moral and political philosophy; models of economic equilibrium
andgrowth;gametheory,includingitsevolutionaryvariants;laboratoryexperimentsin
psychologyandgameinteractions;andeconometricandstatisticalassessmentoftrans-
fersandtransfermotives.
Purpose
TheHandbookoftheEconomicsofGiving,AltruismandReciprocityaimstoprovidea
definitivesource,referenceguide,andteachingsupplementforitsfield.Itsurveys,asof
theearly2000’s,thestateoftheartoftheeconomictheoryandoftheeconometricand
statisticalstudyofitsobject,anditalsoprovidesextensivereviewsofthecontemporary
contributions of the other disciplines concerned by the domain, such as anthropology,
psychology,philosophy,politicalscience,sociology,biologyandsocio-biology.Inad-
dition to its use as a reference guide, the Editors hope that this Handbook will assist
researchers and students working in a particular branch of this vast field to become
acquaintedwithotherbranches.Eachofthechapterscanbereadindependently.
xiii
xiv PrefacetotheHandbook
Organization
The Handbook includes 26 chapters on various topics in the field. Chapter 1 intro-
ducesthesubjectandproposesafirstoverviewofthefield.Thefollowingchaptersare
arrangedintofourparts.PartItreatsFoundations,includingreviewsofeconomictheo-
riesandempiricalfindingsrelativetogift-giving,reciprocityandtheirmotives,andalso
surveysofsimilarcontributionsfromwithinanthropology,philosophy,psychologyand
evolutionarytheory.Thenextthreepartsconcentrateonapplicationstothethreesectors
ofsocietywherenon-marketvoluntarytransfersareparticularlysignificant:thefamily,
withPartIIrelativetoFamilyTransfers,includingmicroeconomicandmacroeconomic
theoriesoffamilytransfersandoftheirtaxation,andcorrespondingeconometricanaly-
ses; the third sector, with Part III on Third Sector and Labour, including theoretical
andempiricalanalyses of philanthropy,non-profitorganizations, cooperativesand co-
operationinlaborrelations,andorgandonations;andtheState,withPartIV covering
ThePoliticalEconomyofVoluntaryTransfers,includingreviewsofthetheoreticaland
empiricalanalysesofthewelfarestateandofinternationalaid.
Level
Allthetopicspresentedaretreatedatanadvancedlevel,suitableforusebyeconomists
andsocialscientistsworkinginthefield,orbygraduatestudentsinbotheconomicsand
thesocialsciences.
Acknowledgements
Firstofall,wewouldliketomakeaspecialmentionofgratitudetoLouis-AndréGérard-
Varet, who participated as editor to the initial conception of the Handbook, and who
unfortunatelydiedshortlyafterthelaunchingoftheproject.Thesetwovolumeswould
nothaveexistedwithouthim.Theyarededicatedtohismemory.Ourotherprincipalac-
knowledgementsaretoKennethArrowandMichaelIntriligatorfortheirfriendlyadvice
asgeneraleditorsoftheseries,andtotheauthorsofchaptersinthepresentHandbook,
whonotonlypreparedtheirownchaptersbutalsoprovidedadviceontheorganization
and content of the volumes and reviewed other chapters. We are also most grateful to
ValerieTeng,seniorpublishingeditorincharge,andherteam,fortheirveryhelpfulas-
sistanceandtheirpatience.Theauthors’conferencethatweorganizedatMarseillesin
January2002wasanimportantstepinthepreparationofthevolumes.Weareindebted
to the Institut d’Economie Publique, the Université de la Méditerranée, and the Ecole
des Hautes Etudes en Sciences Sociales for providing us with the necessary financial
andorganizationalsupportonthisoccasion.Finally,wearegratefultotheUniversitéde
Metz and the Equipe de Recherche en Anthropologie et Sociologie de l’Expertise for
providinguswithfinancialsupportfortheeditingofsubstantialpartsofthevolumes.
Theeditors
Chapter1
INTRODUCTIONTOTHEECONOMICSOFGIVING,ALTRUISM
ANDRECIPROCITY
SERGE-CHRISTOPHEKOLM
InstituteofPublicEconomics,SchoolforAdvancedStudiesintheSocialSciences
Contents
Abstract 4
Foreword 5
PartI:Generaloverview 7
1. Theeconomicsofmoralsentiments 7
2. Motivesforaltruismandaltruisticgiving 8
3. Structuresofaltruism 10
4. Altruismanddemocracy:Altruisticjointgivinganditspublicimplementation 16
5. Motivesandreasonsfornonaltruisticgiving 18
6. Thestructureofnonaltruisticgiving 20
6.1. Frommotivestoforms 20
6.2. Contradictionandpossibilitiesinthelogicofmotives 22
7. Theinefficiencyofindividualgivingwhenjointorpublicgivingispossible:
Theperplexingjointgivingtheorem 23
8. Reciprocities 25
8.1. Anoverview 25
8.2. “Humanrocksonwhichsocietiesarebuilt” 27
8.3. Thespecialgamesofreciprocity 30
9. Importanceandscopeofgiving,altruism,andpro-socialconducts 32
9.1. Overview 32
9.2. Families 32
9.3. Thepoliticalandpublicsector 34
9.3.1. Publicservicesandgeneralpoliticalmotives 34
9.3.2. Actorsofthepoliticalandpublicsystem 36
9.4. Givinginphilanthropy,solidarity,andcharity 37
9.4.1. Socialsituation 37
9.4.2. Motives 38
HandbookoftheEconomicsofGiving,AltruismandReciprocity,Volume1
EditedbySerge-ChristopheKolmandJeanMercierYthier
Copyright©2006ElsevierB.V. Allrightsreserved
DOI:10.1016/S1574-0714(06)01001-3
2 S.-C.Kolm
9.5. Generalrespect,civility,sociality,andhelp 40
9.6. Thecorrectionof“failures”ofexchangesandorganizations 41
9.7. Associations,clubs,cooperatives 42
9.8. Theworkplaceandlabourrelations 43
9.9. Socialgiving:Relation,symbol,status 43
9.10. Normativeeconomicsandthegoodsociety 45
10. Givingreactions 47
10.1. Abouttwoparticularissuesthatcaughtthefancyofeconomists:Intertemporalgivingand
theinternalizationofthegiftexternality 47
10.1.1. Intertemporalgiving,bothways:Bequestandtheretro-giftpublicdebt 47
10.1.2. Economicinternalizationofhelpingexternalities 48
10.2. Interferenceswithaltruisticgiving:Generalview 49
11. Solving“AdamSmith’sproblem” 50
12. Thecausesofandreasonsforaltruism 52
PartII:Altruismsandgiving 54
13. Altruisms:Typesandcausesorreasons 54
13.1. Generalpresentation 54
13.1.1. Introduction 54
13.1.2. Thetwelvebasictypesofaltruism 56
13.1.3. Theobjectsofreasonsforgivingandaltruisms 56
13.2. Naturalorhedonisticaltruism 57
13.2.1. Emotionalcontagion 58
13.2.2. Empathies 58
13.2.3. Affectionandsympathy 59
13.2.4. Compassionandpity 59
13.2.5. Relationsandnatureofhedonisticaltruism 60
13.3. Normativealtruisms 60
13.3.1. Thethreetypesofnormativealtruism:moral,social,andrational 60
13.3.2. Moralandsocialnormativealtruism 61
13.3.3. Rationalaltruism 67
14. Altruismandjustice;impartialaltruism 71
14.1. Altruismandjustice 71
14.2. Impartialaltruism 74
14.3. History 77
14.4. Altruismandjustice:Consistencyorconflict,forceorfreedom 78
15. Giving:Anabundanceandvarietyofmotivesandreasons 80
15.1. Anoverview 80
15.2. Socialeffects 81
15.2.1. Opinion 81
15.2.2. Situation 83
15.2.3. Relation 83
15.3. Intrinsicallynormative(non-altruistic)giving 84
Ch.1: IntroductiontotheEconomicsofGiving,AltruismandReciprocity 3
15.4. Self-interestedgiving 84
15.4.1. Introduction 84
15.4.2. Giftsandinterests 85
15.4.3. Giver’sbenefitfromthegift’seffectonprocessesandtheiroutcome 86
15.5. Givinginsocialrelationsandcommunities 89
PartIII:Valuesandhistory 90
16. Thenormativeeconomicsofaltruismandgiving 90
16.1. Theethicsofeconomics 90
16.2. Theintrinsicvalueofaltruismandgiving 92
16.3. Givingasimprovingfairnessinfreedom 92
16.4. Altruism,giving,reciprocity,andfailuresofeconomicinteractions 93
16.4.1. Causingmarketfailures 93
16.4.2. Curingmarketfailures 93
16.5. Liberalsocialcontractsandjointgiving 94
16.5.1. Liberalsocialcontracts 95
16.5.2. Publicgoodsandjointgiving 95
16.5.3. Thecorewithinterdependentcoalitions 96
16.6. Retro-giftsandtheprocess-liberalpublicdebt 98
16.7. Selfishaltruism:Thesituationoftheotherpersonmaybeyourown 99
16.8. Justicefromaltruism,anddistributionasapublicgood:Thedistributiveormoralsurplus 101
17. Historicallandmarks 103
17.1. Economicsandaltruism 103
17.2. Interdependentutilitiesandsocialchoice 104
17.3. Altruismanduncertainty 105
17.4. Interdependentutilitiesandinterdependentgiving 106
17.5. Anotabledebate:Bloodandtheefficiencyofgiving 107
17.6. Volumesintheeconomicsofgiving,altruismandreciprocity 108
Appendix:Thejointgivingtheorem 108
References 110
Furtherreading 114