Topics in Advanced Microeconomics: Private Provision of PublicGoods.

Course DescriptionObjective. This module focuses on the private provision of public goods.

We introduce basic theories of voluntary giving and charitable fund-raising, andexamine the role of the government as a provider of grants to charities. We willdiscuss new theoretical and empirical studies that incorporate the interdepen-dencies among the participants in charitable markets (donors, fund-raiser andgovernment).Grading. Class presentation (25%), two short problem sets (25%); one �nal

exam (50%).Review Chapters

1. Andreoni, James (2006). Philanthropy, in S-C. Kolm and J. MercierYthier, eds., Handbook of Giving, Reciprocity and Altruism, Amsterdam:North Holland: 1201-1269.

2. Andreoni, James and A. Payne (2013). Charitable Giving.

Tentative Schedule

� Voluntary Giving.

1. Andreoni, J., �Privately Provided Public Goods in a Large Economy: TheLimits of Altruism,�Journal of Public Economics, February 1988, v. 35,57-73.

2. Andreoni, J. �Impure Altruism and Donations to Public Goods: A Theoryof Warm-Glow Giving,�Economic Journal, 100, 1990.

3. Bergstrom, T., L. Blume, and H. Varian. �On the Private Provision ofPublic Goods,�Journal of Public Economics, 1986, v. 29, 25-49.

� Fund-raising

1. Andreoni, J. �Toward a Theory of Charitable Fund-Raising,�Journal ofPolitical Economy, 106, no. 6, 1998, 1186�1213.

2. Andreoni, J. �Leadership Giving in Charitable Fundraising,� Journal ofPublic Economic Theory, 2006, 8, 1-22.

3. Glazer, A., and Konrad, K. �A Signaling Explanation for Charity,�Amer-ican Economic Review, 1996, 86, 1019�28.

4. Marx, Leslie, and Steven Matthews. �Dynamic Voluntary Contributionto a Public Project,�Review of Economic Studies, 2000, 67: 327�58.

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5. Morgan, J. �Financing Public Goods by Means of Lotteries,�Review ofEconomic Studies, 67, 2000, 761-84.

� Government.

1. Andreoni, J. and Payne A. �Do Government Grants to Private CharitiesCrowd Out Giving or Fund-raising?�American Economic Review, 2003,93, 792-812.

2. Andreoni, J. and Payne A. �Is Crowding Out Due Entirely to Fundraising?Evidence from a Panel of Charities,�Journal of Public Economics, 2011,95, 334-43.

3. Ribar, D. C., and M. O. Wilhelm. �Altruistic and Joy-of-giving Motiva-tions in Charitable Behavior,�Journal of Political Economy, 2002, 110:2,425-57.

� Charitable Markets

1. Andreoni, James, and Martin McGuire. �Identifying the Free riders. ASimple Algorithm for Determining who will Contribute to a Public Good.�Journal of Public Economics, 1993, 51(3): 447-54.

2. Name-Correa, Alvaro, and Huseyin Yildirim. �A Theory of Charita-ble Fund-raising with Costly Solicitations,�American Economic Review,2013, 103(2): 1091-1107.

3. Name-Correa, Alvaro, and Huseyin Yildirim. �Charitable Giving UnderSocial Pressure,�Working Paper.

4. Benabou and Tirole. 2006. �Incentives and Prosocial Behavior,� Ameri-can Economic Review, 2006, 96(5), 1652-1678.

5. Krasteva and Yildirim. �Uninformed giving�. Journal of Public Eco-nomics, 2013,106: 14-26.

Papers for Class Presentations.

1. Bac and Bag. �Strategic Information Revelation in Fund-raising�. Journalof Public Economics, 2003, 87: 659�67.

2. Barbieri S. and A. Mattozzi. �Membership in Citizen Groups,� Gamesand Economic Behavior, 2009, 67: 217-232.

3. Barbieri S. and D. Malueg. �Increasing Fundraising Success by DecreasingDonors�Choice,�Journal of Public Economic Theory, 2014, 16(3): 372�400.

4. Benabou and Tirole. 2006. �Incentives and Prosocial Behavior,� Ameri-can Economic Review, 2006, 96(5), 1652-1678.

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5. Dixit, Avinash and Mancur Olson, �Does Voluntary Participation Un-dermine the Coase Theorem?�Journal of Public Economics, June 2000,309-336.

6. Kotchen, Matthew J. �Green Markets and the Private Provision of PublicGoods,�Journal of Political Economy, 2006, 114( 4): 816-834.

7. Krasteva and Yildirim. �Uninformed giving�. Journal of Public Eco-nomics, 2013,106: 14-26.

8. Marx, Leslie, and Steven Matthews. �Dynamic Voluntary Contributionto a Public Project,�Review of Economic Studies, 2000, 67: 327�58.

9. Morgan, J. �Financing Public Goods by Means of Lotteries,�Review ofEconomic Studies, 67, 2000, 761-84.

10. Morgan, J. �Corporate Provision of Public Goods,�Working Paper, 2014.

11. Niehaus, P. �A Theory of Good Intentions,�Working Paper , 2014.

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