Altruism with Social Roots: An Emerging Literature

provided by Research Papers in Economics

DESARROLLO Y SO

SEGUNDO SEMESTRE DE 2006, PP. 245-260.

Altruism with Social Roots:

An Emerging Literature^*

El origen social del altruismo:

una literatura emergente

Pablo Branas-Garza **

Marfa Paz Espinosa ***

Abstract

This paper analyzes the emerging literature on the determinants of
giving within a social network. We propose two main explanatory
variables for previous experimental results on the friendship effect.
The first is social integration, which has a positive impact on giving.
The second variable is strategic and is based on reciprocity: the possi-
bility of ex-post favors. Econometric analysis shows that both vari-
ables play a positive (and significant) role.

Key words: giving, social networks, reciprocity, social integration.

JEL Classification: C91, D64, Z13.

* Maria Paz Espinosa acknowledges financial aid from UPV and DGCYT (BEC2003- 02084
y SEJ 2006-06309 ECON); Pablo Branas-Garza from DGCYT (SEJ2004-07554/ECON)
and GV (GV06/275). We are indebted to two anonymous referees for their comments and
suggestions.

** Professor of the Department of Economics and Economic History, Granada University,
Campus de la Cartuja s/n, 18071 Granada, Spain. Email: [email protected]

***Professor of the Department of Economics, University of the Basque Country, Lehendakari
Aguirre 83, 48015 Bilbao, Spain. Email: [email protected]

This paper was received April 24, 2006, modified November 13, 2006 and accepted
December 13, 2006.

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