THE EONOMIC BEHAVIOR OF CHARITABLE GIVING FOR QUALITY OF LIFE

This paper analyzes the effects of changes in uncertainty for various types of changes in cumulative distribution function using alternative impure public good model of charity that encompasses the traditional pure public good model of charitable contributions. Uncertainty is introduced into the public nature of the charitable contributions by others. This paper also examines the impact of an increase in risk aversion on individual’s own charitable contributions. We show that the comparative statics effects of the mean of the distribution and mean-preserving spreads of the distribution on an individual’s own charitable contributions depend on the normality of consumption and the monotonicity of the index of absolute risk aversion.